ITC Reversal Under Rules 37, 42, and 43: When You Must Reverse Input Tax Credit and How
Not all ITC can be retained. Rule 37 reverses credit when you don't pay the supplier within 180 days. Rules 42 and 43 reverse proportionate credit used for exempt supplies and capital goods. A practitioner's reference on when reversal is mandatory, how to calculate, and where to report.
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