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GST credit reversal

Madhavan iyengar

How does the credit reversal mechanism work in GST- If a person in business had some investment land which he sold will he have to reverse ITC since he has not taken any ITC which is related to land if business is on verge of closure and he has accumulated itc in this situation also should he reverse ITC as there may be a situation wherein as at march 18 a company had accumulated credit of ITC

April to sept 18 there was no business but in Sept 18 land is sold which is exempt will it invite reversal

sec 17(2) mentions where goods and services or both are used partly for effecting taxable and partly for exempt the amount of credit shall be restricted to so much as is attributable to taxable supplies.

does it mean there is a common pool of itc and since it is not possible to arrive at how much is used for taxable and exempt we have to reverse ITC of common credit.

Understanding GST Credit Reversal: When Business Owners Must Reverse Input Tax Credit Under Specific Conditions A business owner inquired about the Goods and Services Tax (GST) credit reversal mechanism, particularly in scenarios involving the sale of investment land and business closure. They questioned whether Input Tax Credit (ITC) needs to be reversed if accumulated ITC is present, especially when no ITC related to land was claimed. The response clarified that ITC reversal is necessary only if the credit was taken from a common input used for both taxable and exempt supplies. If the raw material credit was not used for exempt supplies like land, reversal is not required. (AI Summary)
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