9911796707
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 ..... d 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 in respect of capital goods used or intended to be used exclusively fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded 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 respect of the same to aggregate value of 'Tc'. (e) The amount of input tax credit attributable to a tax period on common capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 available, previous to the month during which the said value of 'E/F' is to be calculated; Note (a) The aggregate value of exempt supplies and the total turnover shall exclude the amount of any duty or t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the completion certificate is issued or first occupation take place of the project, * Manner of final computation * Tefinal= [(E1 + E2 + E3) /F] x Tcfinal, 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 change of rates of tax on 1st April, 2019, which shall be calculated as under, - E2 = [Carpet area of such apartments] x [V1/ (V1+V2)] Where,- V1 is the total value of supply of such apartments which was exempt from tax; and V2 is the total value of supply of such apartments which was taxable E3 = Aggregate carpet area of the apartments, construction of which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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