TaxTMI 
TaxTMI 
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.
ITC REVERSAL ON CAPITAL GOODS
10 Jul 2019 
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Input tax credit reversal not required when capital goods are sold as a taxable supply and GST is paid.
When capital goods used in business are sold as a taxable outward supply and GST is charged and paid on that sale, reversal of input tax credit is not required; reversal is required only where capital goods are diverted to personal use or used for exempt supplies. (AI Summary)
When capital goods used in business are sold as a taxable outward supply and GST is charged and paid on that sale, reversal of input tax credit is not required; reversal is required only where capital goods are diverted to personal use or used for exempt supplies. (AI Summary)