XYZ had obtained MEIS licence and the same is used for payment of customs duty. In financials, they had considered it as income under head other revenues - Export Incentives.
1) Is ITC required to be reversed on it.
2) Is it required to be shown anywhere in GSTR - 1 or GSTR - 3B?
MEIS License Used for Duty Payment: No ITC Reversal Needed, Not Reportable in GSTR-1 or GSTR-3B. XYZ obtained an MEIS license used for customs duty payment, categorizing it as income under export incentives. The queries raised were whether Input Tax Credit (ITC) needs reversal and if it should be reported in GSTR-1 or GSTR-3B. Respondents agreed that since the MEIS was not sold but used for duty payment, ITC reversal is unnecessary. Additionally, as the transaction lacks a supply element, GST does not apply, and it is not required to be reported in GSTR-1 or GSTR-3B. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
