export of used capital asset on which input tax credit has been taken

[Prasenjit Pal]

we have purchased a machinery in yr 19-20 on which full input tax credit has been taken. Now we want to export it. can we do it now? what are the conditions ? Is ITC reversal is required?

AI Summary

Debate on ITC Reversal for Exported Machinery: Aligning GST and IGST Provisions on Zero-Rated Supplies and Capital Goods A discussion on the export of used capital assets, specifically machinery purchased in 2019-2020 with full input tax credit (ITC) taken, raised questions about whether ITC reversal is necessary upon export. Initial responses suggested no reversal was needed, but further examination indicated that reversal might be required under certain conditions. The debate highlighted the complexity of aligning provisions from different sections of the GST and IGST Acts, particularly concerning zero-rated supplies and the supply of capital goods. The consensus leaned towards the necessity of ITC reversal depending on transaction value, with suggestions for exporting under specific sections to mitigate costs.