EXPORT SECOND HAND CAPITAL GOODS

[SHIV MISHRA]

Dear All,

I worked in manufacturing company. recently we export second hand machine which purchased pre GST regime,whether its required to reverse ITC utilised at time of purchase,if Yes than how much ITC to be reverse in such case.Can anyone provide GST rules on above issue.

AI Summary

No ITC Reversal Needed for Exporting Pre-GST Machinery; Zero-Rated Supply Exempt from GST, Say Experts A manufacturing company inquired about the requirement to reverse Input Tax Credit (ITC) on exporting second-hand machinery purchased before the GST regime. Experts in the forum, including Kasturi Sethi and Ashish from Hiregange & Associates, clarified that no reversal is necessary. They explained that exported goods are considered duty-paid and fall under zero-rated supply, which is exempt from GST. Additionally, there are no transitional provisions mandating the reversal of Cenvat Credit for goods acquired pre-GST and exported post-GST. This consensus was supported by relevant case law and sections of the IGST Act, 2017.