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

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.