TaxTMI 
TaxTMI 
The taxpayer purchased Crane on which ITC (IGST) was availed on 25.08.2020 for 1.94 Lac. Now the same crane has being sold with in state on 22.06.2022 for Rs. 5.10 Lac where CGST-45900 and SGST-45900 is payable. The input (IGST) reversal 1.23 Lac (1.94*38/60) is due as per Rule 44(6). You are requested to advise how IGST reversal of input can be made when there is CGST and SGST payable on sale within state. Because higher of ITC reversal and tax payable is to be paid but here components of tax are different
reversal on account of sale of asset
23 Jun 2022 
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Tax liability on sale of capital goods: charge and report output tax when adjustment exceeds transaction value tax.
Where capital goods sold had earlier attracted input tax credit, the seller must pay whichever is higher: the prescribed capital goods adjustment or the tax on the transaction value; if the calculated amount exceeds tax on transaction value it constitutes output tax liability and must be charged, invoiced and reported as outward tax (GSTR 1) rather than shown as an ITC reversal in inward returns, enabling the buyer to claim ITC on taxes so charged. (AI Summary)
Where capital goods sold had earlier attracted input tax credit, the seller must pay whichever is higher: the prescribed capital goods adjustment or the tax on the transaction value; if the calculated amount exceeds tax on transaction value it constitutes output tax liability and must be charged, invoiced and reported as outward tax (GSTR 1) rather than shown as an ITC reversal in inward returns, enabling the buyer to claim ITC on taxes so charged. (AI Summary)