RESOLVED

What is common ITC reversal under GST and how to calculate it?

Home » Support » GST » What is common ITC reversal under GST and how to calculate it?

What is common ITC reversal under GST and how to calculate it?

  • This topic has 1 reply, 2 voices, and was last updated 2 months ago by gstdoctor.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #980
    Milan Tiwari
    Participant

    What is common ITC reversal under GST and how to calculate it?

    #989
    gstdoctor
    Keymaster

    Whenever a taxable person supplies both taxable (including zero rated) and exempted supplies. He has to reverse the common ITC (Input taken on services that are used for both taxable and exempted supplies) in the ratio of exempted supplies/total supplies. This is called common ITC reversal.

    To calculate the common ITC reversal value we may use this formula:
    Common ITC reversal value = Total ITC for common services * (exempted supplies/total supplies)

    For more information, read Common ITC Reversal in GST.

Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘What is common ITC reversal under GST and how to calculate it?’ is closed to new replies.