TMI BlogRule 43 - Manner of determination of ITC in respect of Capital goods and reversal thereof in certain casesX X X X Extracts X X X X X X X X Extracts X X X X ..... following manner prescribed under rule 43 of CGST Rules Rule 43 - Manner of determination ITC in respect of Capital Goods Manner of determination of ITC in respect of capital goods and reversal thereof under section 17(1) (2) - Rules 43 (1) of the GST Rules w.e.f. 01.04.2020 Rule 43(1) of CGST Rules: -Determine common credit Tc on capital goods as under: (a) Identify the amount of input tax in respect of capital goods used or intended to be used exclusively for non-business purposes or used or intended to be used exclusively for effecting exempt supplies shall be indicated in FORM GSTR-3B and shall not be credited to his electronic credit ledger. (b) Identify the amount of input tax i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e , shall be calculated at the rate of five percentage points for every quarter or part thereof and added to the output tax liability of the tax period in which such credit is claimed The amount Tie shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax and declared in FORM GSTR-3B . (d) The aggregate amounts of A credited to ECrL under clause (c) in respect of common capital goods whose useful life remains during the tax period to arrive at common credit Tc , shall be common credit in respect of such capital goods Where capital goods which were initially covered under (b) above get subsequently covered under (c), add input tax claimed in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2: - Explanation 2: Carpet area of apartments, tax on construction of which is paid or payable at the rates specified for items (i), (ia), (ib), (ic) or (id), against serial number 3 of the Table in notification No. 11/2017-Central Tax (Rate) , as amended, shall be taken into account for calculation of value of E‟ in view of Explanation (iv) in paragraph 4 of the notification No. 11/2017-Central Tax (Rate).as amended. For the purpose of rule 43(1)(g) of CGST Rules , the registered person does not have any turnover during the said tax period or the aforesaid information is not available, the value of E/F shall be calculated by taking values of E and F of the last tax period for which the details of such turnover are a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... encement of the project or 1 July 2017, whichever is later To the completion or first occupation of the project, whichever is later Due date of final computation would be made Before the due date for furnishing of the return for the month of September following the end of financial year in which the completion certificate is issued or first occupation take place of the project, Manner of final computation Te final = [(E1 + E2 + E3) /F] x Tc final , Where,- E1 = Aggregate carpet area of the apartments, construction of which is exempt from tax E2 = Aggregate carpet area of the apartments, supply of which is partly exempt and partly taxable, consequent to ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under sub-rule (1) exceeds Te final , such excess amount shall be claimed as credit by the registered person in his return for a month not later than the month of September following the end of the financial year in which the completion certificate is issued or first occupation takes place of the project. The amount Te final and Tc final shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax. Where any capital goods are used for more than one project, input tax credit with respect to such capital goods shall be assigned to each project on a reasonable basis and credit reversal pertaining to each project shall be carried out as per sub-rule (2). Where ..... X X X X Extracts X X X X X X X X Extracts X X X X
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