REVERSAL IN ITC IN GST REGIME

[Guest]

Respected Sirs,

My Client are providing Transportation/Vehicle (Trailer) hire Service. Some Trailers are used for Taxable Supplies, Some Trailers are provided to GTA (which was Exempted as GTA to GTA Transacction),Some Trailers are provided to SEZ Developer (Supply to SEZ without payment of Tax by filling of LUT).

My query is in above case, how to reverse the ITC Creditwhich was fully taken generally on Spare Parts, Repairs, Manpower (Drivers) and on vehicle itself, as it was run for Taxable,Exempted and also in NIL Rated Supply

kindly guide on the same

Thanks

AI Summary

Guidance Sought on Reversing ITC Under GST for Trailer Hire Services Involving Mixed Supplies and Capital Goods A client providing trailer hire services is seeking guidance on reversing Input Tax Credit (ITC) under GST for trailers used in taxable, exempted, and nil-rated supplies. The query involves calculating ITC reversal for spare parts, repairs, manpower, and vehicles. Responses suggest using a formula from GST rules and highlight that no reversal is needed for supplies to SEZ units. For capital goods, ITC should be proportionate to taxable output, based on turnover ratio, and spread over five years, assuming the asset's life span is five years.