Introduction
Rules 42 and 43 require proportionate reversal of input tax credit on inputs and capital goods used for both taxable and exempt supplies. Mistakes in this calculation are a common reason for receiving scrutiny notices.
- What are Rules 42 & 43 Under GST?
- When Are ITC Reversals Applicable?
- Common Mistakes in Monthly Calculations
- Examples of Incorrect Credit Apportioning
- How GSTN Detects These Errors
- Best Way to File Corrections or Reversals
- Preventive Practices and Audit Checklist
Conclusion
Understanding these rules and applying them accurately can help avoid long explanations later. A proactive calculation strategy makes compliance much easier.