How to Handle Reversal of ITC under Rule 42 and 43 of GST with regards to Input & Capital Goods 

In this video we shall learn on handling of ‘Reversal if ITC’ under Rule 42 & 43 of GST Law. TallyPrime handles the reversal of ITC under these Rules in a simple manner.
Provisions of Rule 42 requires the dealers to reverse ITC if claimed with regards to input credit availed on outward supply of ‘ Exempted Goods’ and inputs used for non-business purposes and also ITC to be revered on ‘Negative List Items’ if ITC has been claimed.
Provisions of Rule 43 require the dealers to reverse ITC on Capital Goods, which are used for ‘Exempt Supply’ and ‘Non-Business use’.
The formula provided in these Rules to arrive at the ineligible ITC has been explained in the video with various scenarios and also show how the entries are made in TallyPrime to these effect.
Previous Videos
Highlights of TallyPrime Rel3.0 and How to Migrate to Rel 3.0 - 27th June 2023 - • Highlights of TallyPri...
How to Setup Multi GST Registration in TallyPrime Rel 3.0 - • How to Setup Multi GST...
How to Setup GST Rates in TallyPrime Rel 3.0 - • How to Setup GST Rates...
How to Handle RCM (Reverse Charge) on Outward Supply in TallyPrime Rel 3.0 - • How to Handle RCM (Rev...
How to Handle RCM (Reverse Charge) under GST as Recipient TallyPrime Rel 3.0 - • How to Handle RCM (Rev...
How to Set Ineligible ITC at Company Level for Restaurants in TallyPrime Rel 3.0 - • How to Set Ineligible ...
How to Handle Ineligible ITC for Regular Dealer in TallyPrime Rel 3.0 - • How to Handle Ineligib...
How to Handle Multiple GST Rates with Single Ledger in TallyPrime Rel 3.0 - • How to Handle Multiple...
How to Manage GST Calculation Inheritance in TallyPrime Rel 3.0 - • How to Manage GST Calc...
How to Handle GST Advance Adjustment in TallyPrime Rel 3.0 - • How to Handle GST Adva...
How to Handle Advances Through Receipt Voucher and Report in the Return - • How to Handle Advances...
How to Handle Refund of Advance and GST Adjustment in the Return - • How to Handle Refund o...
How to Manage Additional cost & Discount for GST Calculation in Tax Invoice - • How to Manage Addition...
How to Generate GST Tax Invoice with Inclusive of Tax Rate and with MRP - • How to Generate GST Ta...
How to Enable GST features for Accounts Only Companies for Service Segment - • How to Enable GST feat...
Why GST is Not Calculating in the Invoice? How to Rectify the Same? - • Why GST is Not Calcula...
How to Setup GST Ledgers Under Current Assets? - • How to Setup GST Ledge...
How to Setup GST Ledgers with Multiple Rates in TallyPrime - • How to Setup GST Ledge...
How to Use Stat Adjustment in TallyPrime for GST Reporting - • How to Use Stat Adjust...
How to Use Stat Adjustment for Accounting GST on Import of Services in TallyPrime - • How to Use Stat Adjust...
How to Reverse ITC on Non-payment of Supplier Bills & Reclaim in TallyPrime - • How to Reverse ITC on ...