TaxTMI 
TaxTMI 
Rule 43 capital Goods
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....ule 43 capital Goods<br> Query (Issue) Started By: - KARAN VERMA Dated:- 1-3-2021 Last Reply Date:- 2-3-2021 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Sir, as per Rule 43 if capital goods used for both taxable and exempt supply of goods, then firstly take full amount input credit in 3B return, then reverse in 60 months with turnover ratio of exempt/total sale with interest. My quest....
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....ion is if I m claiming only proportionate ITC as per taxable sale ratio instead of full credit, then whether there is any non compliance of rule 43. I mean if ₹ 100000 ITC and 40% is taxable sale, then I m claiming only ₹ 40000 ITC in 3B instead of full amount. If I m doing above whether department levy any penalty on me. Reply By KASTURI SETHI: The Reply: No possibility of penalty....
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.... in such situation provided that ITC availed is correct. After completion of the year, you should reverse the credit along with interest on our own, if ITC is utilized in excess. Availment of ITC must be certified by Cost Accountant every year. Reply By KARAN VERMA: The Reply: Thank you Sir, one more question regarding this If I avail full ITC and then reversed in GSTR-3B return till 60 months,....
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.... whether I have to pay interest every month on reversal amount of input. Reply By Shilpi Jain: The Reply: If I avail full ITC and then reversed in GSTR-3B return till 60 months, whether I have to pay interest every month on reversal amount of input - YES Further, regarding reversal of credit agree with Kasturi sir that excess availment will require reversal with interest. Though considering the....
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.... interest cost involved in 60 months reversal you could consider availing the estimated credit initially. Another aspect is, in case you avail lesser ITC, i.e. say you estimated 40% to be taxable, but when you recompute the credit as per rule 43 you have noted that you were eligible for 50% credit, then the remaining 10% you may not be eligible as the time would have lapsed. Though another possi....
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....ble view is that there is no time limit for re-availing of credit and hence this should also be possible to avail later. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: I endorse the views of both experts.<br> Discussion Forum - Knowledge Sharing ....