ITC On used machinery, Goods and Services Tax - GST

[husen kadwalwala]

I have query regarding availing ITC.

The supplier has used the plant for two years and had a total ITC of 15 lacs . he has sold all his material nil rated and reversed the ITC on propionate basis.

We are in process of buying a used plant and machinery. There is 7 lacs ITC to be claimed. When we generate a sells invoice can the supplier offset cgst/sgst of bill amount against his pending ITC.

Posts / Replies

[Shilpi Jain]

If the supplier had initially claimed the entire ITC and has reversed periodically, then he can claim the ITC pertaining to the remaining 3 years and set that off against the output tax liability payable on sale of the machinery.