TMI BlogGST credit reversalX X X X Extracts X X X X X X X X Extracts X X X X ..... How does the credit reversal mechanism work in GST- If a person in business had some investment land which he sold will he have to reverse ITC since he has not taken any ITC which is related to land if business is on verge of closure and he has accumulated itc in this situation also should he reverse ITC as there may be a situation wherein as at march 18 a company had accumulated credit of ITC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... April to sept 18 there was no business but in Sept 18 land is sold which is exempt will it invite reversal sec 17(2) mentions where goods and services or both are used partly for effecting taxable and partly for exempt the amount of credit shall be restricted to so much as is attributable to taxable supplies. does it mean there is a common pool of itc and since it is not possible to arrive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at how much is used for taxable and exempt we have to reverse ITC of common credit. - Reply By V ALAGAPPAN - The Reply = the ITC must have been taken from a common input used for making taxable and exempted supplies is the precondition for reversal. for example if you have taken credit from raw material and has not used such raw material for making the exempt supply of land then the ITC taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on raw material need not be reversed. - GST credit reversal - Query Started By: - Madhavan iyengar Dated:- 8-1-2019 Goods and Services Tax - GST - Got 1 Reply - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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