I have query regarding availing ITC.
The supplier has used the plant for two years and had a total ITC of 15 lacs . he has sold all his material nil rated and reversed the ITC on propionate basis.
We are in process of buying a used plant and machinery. There is 7 lacs ITC to be claimed. When we generate a sells invoice can the supplier offset cgst/sgst of bill amount against his pending ITC.
Forum Debates ITC Claims on Used Machinery: Ensure Supplier's Proper ITC Reversal for GST Compliance. A discussion on a forum addresses a query about claiming Input Tax Credit (ITC) on used machinery under the Goods and Services Tax (GST) framework. The original poster is considering purchasing used machinery with a potential ITC claim of 7 lakhs. Respondents advise that if the supplier has proportionately reversed the ITC for previously sold nil-rated materials, they can offset the CGST/SGST liability against pending ITC. It is emphasized that proper documentation and GST compliance are crucial, and the supplier must ensure that the ITC reversal was correctly executed according to GST rules. (AI Summary)
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