Sir, as per Rule 43 if capital goods used for both taxable and exempt supply of goods, then firstly take full amount input credit in 3B return, then reverse in 60 months with turnover ratio of exempt/total sale with interest.
My question is if I m claiming only proportionate ITC as per taxable sale ratio instead of full credit, then whether there is any non compliance of rule 43.
I mean if ₹ 100000 ITC and 40% is taxable sale, then I m claiming only ₹ 40000 ITC in 3B instead of full amount.
If I m doing above whether department levy any penalty on me.
Rule 43 GST: Proportionate ITC Claim for Capital Goods in Mixed Supplies Discussed; No Penalty If Correctly Availed A discussion on Rule 43 of the Goods and Services Tax (GST) addresses the treatment of input tax credit (ITC) for capital goods used in both taxable and exempt supplies. The query raises whether claiming proportionate ITC based on taxable sales, instead of full credit, constitutes non-compliance. Responses indicate no penalty if ITC is correctly availed, advising annual certification by a Cost Accountant. Full ITC can be claimed and reversed over 60 months, with interest applicable on the reversal amount. It's noted that estimating ITC initially may avoid interest costs, and there's debate on the time limit for re-availing credit. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
