ITC On used machinery

[husen kadwalwala]

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.

AI Summary

Input tax credit on used machinery can be applied to offset CGST/SGST if proportional reversal and documentation are complied.
A supplier who availed Input Tax Credit on plant and machinery may set off remaining ITC against CGST/SGST liability on sale of used machinery if the supplier has performed the required proportional ITC reversal and the machinery is eligible for ITC; proper invoices and documentation evidencing the reversal and compliance must be maintained.