Capital Goods Purchased should be used for atleast 60 months
If they are disposed of before 60 months/business closed within 60 months,Input taken has to be reversed
Q1 - Suppose Machine Purchased on 19 July 2017 as follows
| PARTICULARS | AMT |
| MACHINE | 100000 |
| CGST | 9000 |
| SGST | 9000 |
| TOTAL | 118000 |
IT IS DISPLOSED ON 23 OCT 2017
View answer
In this case,it is used for 3 months 4 days
This will be counted as 4 months
So We will Reverse Input for 56 Months
| Input Taken | 9000 | 9000 | july |
| Input Reversal | 8400 | 8400 | Oct |
Q2 - Suppose Machine Purchased on 19 July 2017 as follows
| PARTICULARS | AMT |
| MACHINE | 100000 |
| CGST | 9000 |
| SGST | 9000 |
| TOTAL | 118000 |
IT IS DISPLOSED ON 23 OCT 2022
View answer
In this case,it is used for more than 5 years
So no need of reversal of input
| Input Taken | 9000 | 9000 | july |
| Input Reversal | 8400 | 8400 | Oct |