Goods and Services Tax - Started By: - ROHIT GOEL - Dated:- 13-6-2018 Last Replied Date:- 21-6-2018 - Hi Sir, As per sec 18(6) of CGST Act 2017, when capital goods on which ITC has been taken are sold, then the assessee should pay: a) ITC taken earlier after reduction of prescribed percentage points OR b) tax on transaction value on sale whichever is higher. Further as per Rule 40(2) of CGST Rules: (2) The amount of credit in the case of supply of capital goods or plant and machinery, for the purposes of sub-section (6) of section 18, shall be calculated by reducing the input tax on the said goods at the rate of five percentage points for every quarter or part thereof from the date of the issue of the invoice for such goods. However, Rule 44 also states that: (1) The amount of input tax credit relating to inputs held in stock, inputs contained in semi-finished and finished goods held in stock, and capital goods held in stock shall, for the purposes of sub-section (4) of section 18 or

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