Formula for reversing GST ITC Credit on Sale of MEIS/SEIS

[SHAHID HASHMI]

We are exporter. Hence we are getting MEIS/SEIS Script. We have planned to sale the same to other party. As per recent Notification, sales of script is come under exempted goods Chapter Heading No.4907.

Our queries as follows:

1. Whether sale of the same is come under Section 17(2).

2. Whether we have to reverse GST ITC for the above sales. Since we are selling goods at zero rates in case of export and we have got script based on export sales. Further neither we have taken any credit on purchase/issue of such script nor we have used any GST paid materials/services on sale of such script.

3. If so, what is the formula to be applied for reversing the GST ITC Script (if it is not 100% exempted).

AI Summary

Selling MEIS/SEIS scripts under GST: Section 17(2) non-applicable, no GST ITC reversal needed. Expert opinions invited. An exporter inquired about the implications of selling MEIS/SEIS scripts under GST, specifically whether such sales fall under Section 17(2) and if GST ITC needs to be reversed. The scripts are classified as exempted goods under Chapter Heading No. 4907. The exporter clarified that no credit was taken on the purchase or issue of these scripts, nor were GST-paid materials/services used in their sale. In response, a participant opined that Section 17(2) does not apply to this situation and invited further expert opinions on the matter.