GST ITC Reversal Calculator
Statutory Input Tax Credit apportionment & reversal calculator under Section 17 of CGST Act read with Rule 42 (Inputs & Services) and Rule 43 (Capital Goods)
ITC Reversal Calculation
Statutory Apportionment BreakdownCGST Rule 42
Total inputs and input services tax credit
Non-business (₹5,000.00) + Exempt (₹10,000.00) + Blocked (₹5,000.00)
Amount credited to Electronic Credit Ledger
100% eligible, excluded from common reversal
Subject to pro-rata reversal formula
Ratio: 20.00% on Common ITC
Net retained credit after statutory reversal
Rule 42 Statutory Formula
Apportionment of operational inputs and input services common credit between taxable and exempt supplies:
Total reversal (D1 + D2) is reported under Table 4(B)(1) of GSTR-3B as statutory reversal.
Rule 43 Statutory Formula
Apportionment of common capital goods credit over a statutory 60-month useful life:
Full credit Ac is credited initially, and monthly reversal Te is added to output liability for 60 months.
Mandatory Annual True-up under Rule 42(2)
Monthly reversals are provisional. Registered persons must re-compute Rule 42 for the entire financial year based on aggregate annual turnover before 30th November following the financial year. Shortfalls must be discharged with Section 50 interest, while excess reversals can be reclaimed.
Legal Basis & Statutory Authorities
Restricts ITC where goods or services are used partly for business and partly for other purposes, or for taxable and exempt supplies.
Defines exempt supplies (including RCM supplies, sale of land, transactions in securities) and lists blocked credits.
Prescribes exact mathematical apportionment formulas for inputs, input services, and 60-month capital goods amortization.
Applicable law may vary depending on the nature of supplies, classification, business use, tax period and facts of the transaction.
Frequently Asked Statutory Questions (FAQs)
Input Tax Credit (ITC) reversal is the statutory process of repaying or debiting credit previously claimed or credited, where goods or services are used for non-business purposes, exempt supplies, or where statutory conditions under Section 17 of the CGST Act and Rules 42 & 43 are triggered.
Statutory Disclaimer: This calculator provides an indicative computation based on the information entered by the user and the statutory framework selected. Actual ITC eligibility and reversal may depend on the nature of supply, business/non-business use, exempt supplies, blocked credits, tax period, returns and other applicable provisions of GST law. This tool does not constitute a GST opinion or professional advice.
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