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TMI Blogexport of used capital asset on which input tax credit has been takenX X X X Extracts X X X X X X X X Extracts X X X X ..... we have purchased a machinery in yr 19-20 on which full input tax credit has been taken. Now we want to export it. can we do it now? what are the conditions ? Is ITC reversal is required? - Reply By KASTURI SETHI - The Reply = You can export now . No reversal is required. - Reply By ABHISHEK TRIPATHI - The Reply = Have a doubt Sir, when the capital goods are supplied in India then there is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eversal in light of Section 18 and the calculation will be in accordance with Rule 40(2) or Rule 44(6) r/w Rule 44(1)(b) . Why in export such requirement isn't there? - Reply By KASTURI SETHI - The Reply = Sh.Abhishek Tripathi Ji, Re-examined the issue. Sir, I agree with you . Reversal is required de jur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. - Reply By Atul Mehrotra - The Reply = Dear experts. Since export is a zero rated supply, shouldn't ITC be available based on section 16(2) of IGST Act ? Please explain why is there a requirement to reverse proportionate ITC? - Reply By ABHISHEK TRIPATHI - The Reply = Dear Atul Sir, For me it is ambiguous. How will you read S. 16(2) of the IGST and S. 18(6) of the CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in consonance. On provisions allows you to take ITC on zero rated supplies and the other ask for reversal on supply of capital goods. - Reply By Vishwanath Bhat - The Reply = Yes, You can export, ITC reversal depends on transaction value.(GST to be paid remaining ITC or GST on transaction value, whichever is higher) - Reply By KASTURI SETHI - The Reply = Section 2(19) of CGST Act says ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital goods means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business; In this scenario, the capital goods are being removed after use for two years. It is not as such. Whether removal after use or as such in both ways, the value of such g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods will be de-capitalised from the books of account and hence will be out of definition of 'capital goods' . I humbly request experts to examine the issue in the light of above expression. - Reply By Punit Agarwal - The Reply = I believe ITC might be required to be reversed. But there is a safe side to it. You Export the goods on payment of taxes under section 16(3)(b) . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It will help you save the Cost of ITC. - Reply By YAGAY SUN - The Reply = There is no duty or taxes on Export except on some goods. If there is no accumulation of ITC and Working Capita issue, then, Export under LUT is feasible. - export of used capital asset on which input tax credit has been taken - Query Started By: - Prasenjit Pal Dated:- 22-4-2021 Goods and Services Tax - GST - Got 9 R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eplies - 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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