Rule 44. Manner of reversal of credit under special
circumstances.-
(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 sub-section (5) of section 29, be determined in the
following manner, namely,-
(a) for inputs held in stock and inputs contained in
semi-finished and finished goods held in stock, the input tax credit shall be
calculated proportionately on the basis of the corresponding invoices on which
credit had been availed by the registered taxable person on such inputs;
(b) for capital goods held in stock,the input tax
credit involved in the remaining useful life in months shall be computed on
pro-rata basis, taking the useful life as five years.
Illustration:
Capital goods have been in use for 4 years, 6 month
and 15 days.
The useful remaining life in months= 5 months ignoring
a part of the month
Input tax credit taken on such capital goods= C
Input tax credit attributable to remaining useful
life= C multiplied by 5/60
1[(2) The amount, as specified in sub-rule (1) shall
be determined separately for input tax credit of central tax, State tax, Union
territory tax and integrated tax.
(3) Where the tax invoices related to the inputs held
in stock are not available, the registered person shall estimate the amount
under sub-rule (1) based on the prevailing market price of the goods on the
effective date of the occurrence of any of the events specified in sub-section
(4) of section 18 or, as the case may be, sub- section (5) of section 29.]
(4) The amount determined under sub-rule (1) shall
form part of the output tax liability of the registered person and the details
of the amount shall be furnished in FORM GST ITC-03, where such amount relates
to any event specified in sub-section (4) of section 18 and in FORM GSTR-10,
where such amount relates to the cancellation of registration.
(5) The details furnished in accordance with sub-rule
(3) shall be duly certified by a practicing chartered accountant or cost
accountant.
(6) The amount of input tax credit for the purposes of
sub-section (6) of section 18 relating to capital goods shall be determined in
the same manner as specified in clause (b) of sub-rule (1) and the amount shall
be determined separately for input tax credit of 2[Central tax, State tax,
Union territory tax and integrated tax]:
Provided that where the amount so determined is more
than the tax determined on the transaction value of the capital goods, the
amount determined shall form part of the output tax liability and the same
shall be furnished in FORM GSTR-1 .
d;
