Proportinate itc concept in gst on sale on used car

[Shubham Porwal]

Hello everyone... I am new user here ...please help me ...! If one purchased furniture for rs 1lac and gst 28,000 total 1,28,000 and sold it just after 2years... what shall be the impact on itc ...will it be claimable upto rs 28,000 or any proportionate reduction should be made .....?

Please reply....!

Thanks

Shubham

[Alkesh Jani]

Sir,

If purchased furniture is booked as capital goods in your books of Account, than 5 point per quarter is to be reduced.

If not booked as capital goods, then it is normal supply.

Our experts may correct me if mistaken.

Thanks

[Shubham Porwal]

Sir The asset is used for office purpose (i.e he doesn't deal purchasing and selling of furniture) so why there is reduction in itc ....? Because the furniture one time will become obsolete and if we reduce itc ...then there can be loss to client .....!

Please help me to gain knowledge

[Alkesh Jani]

Sir, It will be very difficult for me to explain your query raised, but to reduced ITC is for the compliance of law.

Thanks

[Shubham Porwal]

Thank you so much sir for your valuable time

[CSSANJAY MALHOTRA]

Mr Alkesh, your views are correct t as to initial query raised by querist but he change his query in his second post.

Mr. Shubham, please go through schedule -1 of supply specifically clause (a) . Hope u will find answer.

[YAGAY andSUN]

We endorse the views of experts.

[Alkesh Jani]

Sir, Thank you Sh. SANJAY MALHOTRAJI, for explaining the querist. It is really very difficult for me to explain “why” and I extend my apology to the querist for not furnishing the explanation.

Thanks

[KASTURI SETHI]

Sh.Alkesh Jani Ji,

I would like to suggest as under :-

(i) Use the word, 'Clarification' and NOT, Explanation'. Explanation conveys something different. We are to use the word, "clarification"

AI Summary

Impact on ITC for Selling Used Office Furniture Under GST: Capital Goods Classification and Schedule 1 Consultation A user inquired about the impact on Input Tax Credit (ITC) under GST when selling used office furniture. The initial question was whether the full ITC of Rs 28,000 could be claimed or if a proportionate reduction was necessary. A respondent explained that if the furniture is classified as capital goods, ITC reduces by 5% per quarter. The user clarified that the furniture was for office use, not resale, questioning the necessity of ITC reduction. Another participant suggested consulting Schedule 1 of supply for further clarification. The discussion emphasized compliance with GST laws and the importance of terminology in explanations.