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TMI BlogHow to Show GST Implication of Sale of Fixed Asset in GST ReturnX X X X Extracts X X X X X X X X Extracts X X X X ..... How to Show GST Implication of Sale of Fixed Asset in GST Return X X X X Extracts X X X X X X X X Extracts X X X X ..... he Input tax Credit based on 5% quarter. How will we show the transaction in GSTR-1 and GSTR-3B Reply By Sadanand Bulbule: The Reply: Read the break-up details of Box No. 3 & 4 of the GSTR-3B carefully. Reply By YAGAY andSUN: The Reply: In continuation of the above reply, following revert may also be useful for you in the aforesaid matter: As per our Understanding of this matter you' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;re tackling an important GST ITC reversal requirement when capital goods are sold before the end of their useful life (5 years = 20 quarters). Let's break it down step by step and explain both the ITC reversal calculation and how to report this in GSTR-1 and GSTR-3B. 🔍 Scenario Summary: Item Value Purchase Value Rs.5,90,000 GST Paid (ITC availed) Rs.90,000 (18%) Time Held Before S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale 1 year 2 months = ~5 quarters Capital Goods Sold At Rs.3,50,000 (no GST charged) GST Rate on Sale 18% Sale is Without GST Hence ITC Reversal Required 🧮 Step-by-Step ITC Reversal Calculation (as per Rule 44(6) of CGST Rules) If capital goods are sold without tax, ITC reversal is required using the 5% per quarter rule. 1. Total Quarters of Usage: * 1 year 2 months = 5 quarter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 2. Number of Remaining Quarters (out of 20): * Total useful life: 5 years = 20 quarters * Used: 5 quarters * Remaining: 15 quarters 3. ITC to be Reversed: * Reversal = (5% of ITC per quarter) x remaining quarters * Reversal = 5% x 15 = 75% of Rs.90,000 * = Rs.67,500 👉 Rs.67,500 needs to be reversed as ITC since the sale is made without charging GST. 📤 How to Show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in GSTR-3B In GSTR-3B, ITC reversal is reported in Table 4(B)(2): 🔸 Table 4(B)(2): "Others" - ITC Reversed Particulars: Others Amount: Rs.67,500 This will reduce your total available ITC for the month. 📄 How to Show in GSTR-1 Since the capital asset is sold without tax, this is considered a non-GST/outward exempted supply. You need to report it in Table 8 of GSTR-1: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2; GSTR-1 → Table 8: Nil Rated, Exempted and Non-GST outward supplies Nature Taxable Value Integrated Tax Central Tax State/UT Tax Exempted Outward Supply Rs.3,50,000 0 0 0 👉 You're not charging GST, so report the value as exempted outward supply here. ✅ Summary: Action Reporting Reverse ITC (Rs.67,500) GSTR-3B → Table 4(B)(2) - "Others" Sale of asset ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.3,50,000) GSTR-1 → Table 8 - Exempt outward supply 📝 Bonus Tip: Had you charged GST on sale, you could have retained full ITC of Rs.90,000 and charged 18% on Rs.3,50,000 (Rs.63,000) as output tax - so you might want to assess which is more tax-efficient in future disposals. Disclaimer: This discussion cannot be treated as an legal opinion as it is only for the purpose of knowle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dge enrichment. X X X X Extracts X X X X X X X X Extracts X X X X
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