Sir I have attached my
gstr-3b for may month.
value (MRP) of free
samples of medicines rs.84790
(without free samples) of may month Rs. 262517
Total ITC Rs. 29998
Kindly calculate and
let me know the ITC to be reversed. I saw the formula but not able to calculate
the amount. Kindly let me know the figure of ITC to be reversed.
Kindly reply the
Thank you in advance.
As per rule 37 of CGST rules, 2017, the amount of input tax credit shall
be added to the output tax liability of the registered person where goods are
supplied without consideration. The taxpayer has to simply reverse the ITC
which was claimed earlier at the time of purchase of said goods. There is no
formula as such.
For example— suppose a
taxpayer purchase LED TV and Laptop from
their distributor. The following are the details of inward supplies:
50,000 5,00,000 90000
offer of buy one TV and get laptop free announced by the taxpayer. Now on making outward
supply of a laptop as free, GST will not be charged but the taxpayer has to
reverse the ITC claim of Rs 4,500 on the inward supply of laptop.