Reversal of ITC for capital goods: pay higher of pro rata remaining ITC or tax on transaction value, then report accordingly. Supply of capital goods on which ITC was claimed requires payment of the higher of: the pro rata ITC attributable to remaining useful life (useful life taken as five years) or tax on transaction value under section 15. Reversals are computed separately for central, state/UT and integrated tax; scrap supplies of certain items may be taxed on transaction value. Where the determined amount exceeds tax on transaction value it forms part of output tax liability and must be reported in FORM GSTR-1, with ITC-03 and GSTR-10 used for specified events under Rule 44(4) and Rule 44(6).