TaxTMI 
TaxTMI 
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?
export of used capital asset on which input tax credit has been taken
22 Apr 2021 
9 Replies 
5432 Views Asked by
Input tax credit reversal questioned for export of used capital goods, highlighting conflict between ITC entitlement and reversal rules.
The text addresses whether export of a used capital good that attracted input tax credit requires reversal, noting a statutory tension between entitlement to ITC on zero-rated exports and provisions mandating reversal on supply of capital goods. Contributors give divergent views: some deny reversal for exports, others assert reversal is required, and practical approaches suggested include exporting under LUT, exporting on payment of tax to preserve cost, or applying existing domestic reversal calculation methods tied to transaction value. (AI Summary)
The text addresses whether export of a used capital good that attracted input tax credit requires reversal, noting a statutory tension between entitlement to ITC on zero-rated exports and provisions mandating reversal on supply of capital goods. Contributors give divergent views: some deny reversal for exports, others assert reversal is required, and practical approaches suggested include exporting under LUT, exporting on payment of tax to preserve cost, or applying existing domestic reversal calculation methods tied to transaction value. (AI Summary)