Branch Trf of Capital Goods viz a viz Rule 43

[Asked by Guest]

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.

AI Summary

Stock transfer taxation: inter state transfer of capital goods typically attracts IGST and ITC is claimable only per reversal rules.
Transfers of capital goods between distinct GST registrations in different States should be treated as taxable stock transfers attracting inter state tax; IGST is ordinarily leviable and the receiving registration may claim ITC only in accordance with return, reversal rules and time limits. If the tax component was capitalised and depreciation claimed at the originating registration, that registration generally cannot re avail input tax credit. Proper invoicing, appropriate registration, and correct GSTR treatment for outward liability and inward credit are required, with attention to judicial precedents and statutory reversal mechanics.