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

Proportionate ITC reversal on capital goods: periodic reduction required when sold, otherwise normal supply treatment applies.
If furniture is recorded as capital goods, the purchaser must proportionately reduce claimed ITC by applying a five percentage point reduction per quarter as a reversal mechanism when the asset ceases to be used in taxable activity. If the furniture is not capital goods, its sale is treated as a normal supply without that periodic ITC adjustment. The discussion also refers to Schedule-1 clause (a) for related supply definitions.