Dear Experts,
Background :
Co manufactures 100% nil rated products. Therefore all the ITC on Input+Input Service+CG is reversed under rule 42 + 43.Co has multiple registrations in different State and HO in Maharashtra.
Facts:
Capital Goods were purchased in April-2018. ITC was claimed in return and blocked in Rule 43. Since ITC is blocked - Depreciation is claimed in books.
Now in April 2021 we want to trf this machinery to other state say Karnataka.
Issue:
Whether I need to again pay IGST on the Capital Goods while sending them from MH to KR?
If yes - can I re-avail the ITC already reversed ?
If No - how to proceed further with this option - Could you pl help me some supporting provisions for the same.
Company's Stock Transfer of Capital Goods Between States Taxable Under GST; ITC Re-availment Not Allowed Per GST Rules A company manufacturing nil-rated products is considering transferring capital goods from Maharashtra to Karnataka and seeks advice on whether Integrated Goods and Services Tax (IGST) is payable on this transfer. The company had initially claimed Input Tax Credit (ITC) on these goods, which was later reversed, and depreciation was claimed instead. Experts in the forum discuss the applicability of GST on such stock transfers, citing relevant legal precedents and provisions. They conclude that the transfer is taxable under GST, and ITC cannot be re-availed since the tax component was capitalized with the asset. The discussion also touches on registration requirements under GST for businesses supplying exempt goods. (AI Summary)
TaxTMI 
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