Formula for reversing GST ITC Credit on Sale of MEIS/SEIS, Goods and Services Tax - GST

[SHAHID HASHMI]

We are exporter. Hence we are getting MEIS/SEIS Script. We have planned to sale the same to other party. As per recent Notification, sales of script is come under exempted goods Chapter Heading No.4907.

Our queries as follows:

1. Whether sale of the same is come under Section 17(2).

2. Whether we have to reverse GST ITC for the above sales. Since we are selling goods at zero rates in case of export and we have got script based on export sales. Further neither we have taken any credit on purchase/issue of such script nor we have used any GST paid materials/services on sale of such script.

3. If so, what is the formula to be applied for reversing the GST ITC Script (if it is not 100% exempted).

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

In my view section 17(2) will not be applicable in your case. Experts views are solicited.