ITC Reversal on sale of used commercial vehicle by Company

[NISHANT SHAH]

Company had bought Eicher tempo 4 years ago in AUG 20 and now it has to be sold to consumer who is unregistered person.

Company had claimed ITC 28% while purchasing this Eicher considering same as using for commercial purpose .

1. Now whether company is liable to reverse ITC proportionately since company has used same vehicle for 4 years. So whether company is liable to reverse ITC of 1 year as per Rule 43 ?

2. Whether company has to charge GST also on Sales Bill in case it is sold for less than WDV Price ? i.e., Book loss.

AI Summary

ITC reversal on used capital goods: pay higher of residual ITC or tax on sale, margin scheme unavailable.
Sale of a used commercial vehicle with ITC claimed requires ITC reversal under the capital-goods disposal mechanism: compute residual ITC by reducing claimed ITC by prescribed percentage points for every quarter or part thereof since invoice date, and pay the higher of that residual ITC or tax on the transaction value. GST is payable even if sale proceeds are below written down value, and margin-scheme payment is not available where ITC was taken.