ITC REVERSAL ON CAPITAL GOODS

[Bhupinder Singh]

A taxable person has paid tax whilst procuring capital goods and has claimed ITC thereon. It sells out its capital goods by duly charging GST applicable on the sale (and deposits). Is it still liable of ITC reversal. Please explain.

AI Summary

Debate on ITC Reversal: Experts Agree No Reversal Needed if GST Paid on Capital Goods Sale A discussion on a forum addressed whether a taxable person must reverse Input Tax Credit (ITC) after selling capital goods and charging the applicable Goods and Services Tax (GST). Several participants, including Dr. Mariappan Govindarajan, Mr. Patel, and Ganeshan Kalyani, agreed that ITC reversal is not necessary if GST is duly paid on the sale of capital goods. Shilpi Jain and KASTURI SETHI argued that reversal is not required if the goods were used for business and taxable supplies. YAGAY and SUN highlighted that double taxation is not permissible under the Indian Constitution.