Home Forum Goods and Services Tax - GST Month 8 2021 2021 (8) This
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Reversal under rule 42 of CGST Act - Goods and Services Tax - GSTExtract Dear Experts, Request your views on the following As per Rule 42(1) , there is requirement of monthly reversal of common credit in the ratio of exempt turnover to total turnover. However, as per rule 42(2) , the reversal is required to be computed annually and if there is any variation between annual and monthly numbers then, the same is either required to be reversed or recredited by September month following the end of the financial year. Query 1. Whether recomputation of number annually are required to be done on annual nos or just recomputation of monthly numbers after factoring in any changes during the year? 2. What is the way out if there is excess reversal as per monthly calculation and time limit to reclaim the credit i.e. september month has lapsed. Thanks
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