How to Show GST Implication of Sale of Fixed Asset in GST Return

[Roshan Chaudhary]

A Capital Asset is Purchased At 590000 in which 90000 is GST, and after 1 year 2 Month, the Capital Asset Sold at 350000 without Tax (GST rate is 18% on the Sale). We Have to Reverse the Input tax Credit based on 5% quarter. How will we show the transaction in GSTR-1 and GSTR-3B

AI Summary

GST Rule 42: Calculating Input Tax Credit Reversal When Selling Capital Asset Before Useful Life Expires A discussion forum post explores GST implications for selling a capital asset before its useful life. The asset was purchased for Rs. 590,000 with Rs. 90,000 GST and sold after 1 year 2 months for Rs. 350,000 without tax. The key guidance involves calculating ITC reversal at 75% (Rs. 67,500) and reporting in GSTR-3B and GSTR-1 as an exempted outward supply, following specific GST rule calculations for capital goods disposal.