ITC reversal u/s 42 for high sea sale shown as exempted sale

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..... ITC reversal u/s 42 for high sea sale shown as exempted sale
Query (Issue) Started By: - Rajesh Kumar Dated:- 28-9-2021 Last Reply Date:- 28-9-2021 Goods and Services Tax - GST
Got 3 Replies

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..... >GST
Sir/ madam please guide when an assesse has high sea sale as exempted sale shown in 3B return. Is he liable to reverse itc under section 42 for this sale? What will the formula for this rever .....

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..... sal only for this exempted sale ? Reply By KASTURI SETHI: The Reply: Formula for reversal D1 = E/F*C2 D1=amount of input tax credit attributable towards exempted supplies E = the aggregate value .....

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..... of exempted supplies F= the total turnover in the State C2=common credit pertaining to taxable as well as exempted supplies Reply By Shilpi Jain: The Reply: High sea sales being a Sch III item wou .....

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..... ld not be considered as an exempt supply for the purposes of reversal of ITC in terms of section 17(3) of the CGST Act. So ideally no reversal of credit required. Reply By KASTURI SETHI: The Reply: .....

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..... I concur with the views of Madam Shilpi Jain.
Discussion Forum - Knowledge Sharing .....

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