ITC Reversal Rule 42 43: A Practical Guide

ITC reversal under Rule 42 and 43 applies when you make both taxable and exempt supplies. The common credit must be apportioned.

Why reverse

Credit attributable to exempt supplies is not available.

Rule 42

Apportions input and input-service credit between taxable and exempt. This is central to ITC reversal Rule 42 43 and how the rule plays out in practice.

Rule 43

Handles capital-goods credit apportionment over its useful life.

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Frequently asked

Why does ITC reversal Rule 42 43 matter for my business?

Getting ITC reversal Rule 42 43 right keeps your filings consistent and your GSTINs free of avoidable notices. When the position is unclear, a quick expert review is far cheaper than a later dispute.

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