Input Reversal on Capital Goods

[AdvMurari Kumar]

HI,

We have taken GST Input earlier on Capital Goods at the time of capitalization. Now as on 31st March 22 we discarded the same as the WDV was zero because the life was three years. as per GST rule the life of Capital goods was 5 Year. so it compelled to reverse rest input, after Input utilizing 5% per qtr for three years. is there any way to save that input.

AI Summary

Debate on GST input reversal for capital goods discarded before 5-year term, focusing on Rule 43 and Section 18(6). A discussion on a forum addressed the issue of GST input reversal on capital goods. The initial query raised concerns about reversing input tax credit (ITC) after discarding capital goods with zero written-down value (WDV) before the GST-mandated five-year lifespan. Responses varied, with some suggesting retaining the asset for the full term, while others advised on reporting through GSTR-3B or DRC-03. The conversation explored whether the goods were discarded or disposed of, affecting the applicability of GST rules. Participants debated the interpretation of Rule 43 and Section 18(6) regarding ITC reversal obligations.