GST Statutory Compliance & Input Tax Credit
GST Common Credit & Rule 42/43 ITC Reversal Calculator
Compute input tax credit reversals on common inputs, input services, and capital goods under Rules 42 & 43 of CGST Rules. Apportion common credit across exempt and taxable supplies, apply 5% non-business deemed reversals, and generate exact GSTR-3B Table 4 reporting entries.
Industry & Business Presets
Simple total amounts with automated 50:50 CGST/SGST apportionment
Turnover Details (Tax Period)
Turnover in State used to compute exempt supply proportion (E / F)
Aggregate value of all taxable, zero-rated, and exempt supplies in the State.
Aggregate value of nil-rated, wholly exempt, and non-GST supplies.
Inputs & Input Services Tax (Rule 42)
ITC on trading stock, materials, rent, professional services, freight, etc.
Total ITC on inputs & input services received during the tax period.
Tax on goods/services used exclusively for taxable supplies & exports.
Tax on goods/services used exclusively to produce exempt goods/services.
Motor vehicles, food, outdoor catering, employee insurance, lost/stolen goods.
Tax on goods/services used exclusively for personal/non-business purposes.
Capital Goods Common Credit (Rule 43)
Machinery, computers, furniture used commonly for taxable & exempt supplies
Total ITC on capital goods with 60-month useful life. Monthly credit = Tc / 60.
ITC Apportionment & Reversal Summary
- Common Credit (C2)
- ₹95,000.00
- Ineligible for Exempt Supplies (D1)
- ₹28,500.00
- Rule 42 Monthly Reversal (D1 + D2)
- ₹28,500.00
- Rule 43 Monthly Reversal (Te)
- ₹300.00
GSTR-3B Table 4 Ready-to-File Mapping
Exact values to fill in your monthly GSTR-3B return
Detailed Tax Head Apportionment (IGST, CGST, SGST)
Exact CGST, SGST, and IGST apportionment across all statutory calculation stages
| Rule & Calculation Component | IGST (₹) | CGST (₹) | SGST (₹) | Total (₹) |
|---|---|---|---|---|
| Total Input Tax (T) | ₹0.00 | ₹1,25,000.00 | ₹1,25,000.00 | ₹2,50,000.00 |
| Invoice Deductions (T1 + T2 + T3) | ₹0.00 | ₹17,500.00 | ₹17,500.00 | ₹35,000.00 |
| Eligible ECL Credit (C1 = T - T1 - T2 - T3) | ₹0.00 | ₹1,07,500.00 | ₹1,07,500.00 | ₹2,15,000.00 |
| Exclusive Taxable Supplies (T4) | ₹0.00 | ₹60,000.00 | ₹60,000.00 | ₹1,20,000.00 |
| Common Credit to Apportion (C2 = C1 - T4) | ₹0.00 | ₹47,500.00 | ₹47,500.00 | ₹95,000.00 |
| Ineligible Exempt Reversal (D1 = C2 × E/F) | ₹0.00 | ₹14,250.00 | ₹14,250.00 | ₹28,500.00 |
| Capital Goods Monthly Reversal (Te = Tm × E/F) | ₹0.00 | ₹150.00 | ₹150.00 | ₹300.00 |
| Total Monthly Reversal [GSTR-3B Table 4(B)(1)] | ₹0.00 | ₹14,400.00 | ₹14,400.00 | ₹28,800.00 |
| Net Eligible ITC [GSTR-3B Table 4(C)] | ₹0.00 | ₹1,23,100.00 | ₹1,23,100.00 | ₹2,46,200.00 |
Frequently asked questions
What is the difference between Rule 42 and Rule 43 under GST?
Rule 42 applies to inputs (raw materials, trading goods) and input services (office rent, freight, professional fees) consumed within the tax period. Rule 43 applies to capital goods (plant, machinery, computers, office furniture), whose statutory useful life is fixed at 60 months (5 years), requiring common credit to be apportioned monthly at 1/60th of the tax credit.
How should Rule 42 and Rule 43 reversals be entered in GSTR-3B?
Enter the gross available credit (C1 + Tc) in Table 4(A)(5) 'All other ITC'. Then enter the combined reversal amount (D1 + D2 + Te) in Table 4(B)(1) 'As per rules 42 & 43 of CGST Rules'. The net available ITC in Table 4(C) will automatically calculate as Table 4(A) minus Table 4(B).
When must the 5% non-business deduction (D2) be applied?
Under Rule 42(1)(j), D2 (5% of common credit C2) is mandatory whenever common inputs or services are used partly for business and partly for non-business/personal purposes (e.g. sole proprietor using office broadband, rent, or telephone for family use). If common facilities are 100% strictly corporate/business, D2 can be omitted.
What is the annual reconciliation requirement under Rule 42(2)?
Rule 42 monthly calculations are provisional because monthly turnover ratios fluctuate. At the end of the financial year, the registered person must recalculate reversals based on full annual turnover before 30th November following the end of the financial year. Any excess ITC claimed must be reversed with interest under Section 50, and any shortfall may be reclaimed.
Are zero-rated export supplies treated as taxable or exempt for turnover ratio?
Zero-rated supplies (exports of goods/services and supplies to SEZ developers/units) are treated as taxable supplies under Section 16 of the IGST Act. They are NOT included in exempt turnover (E) and are eligible for 100% full input tax credit.
What if total turnover (F) is zero in a specific month?
Under the proviso to Rule 42(1)(i), if the registered person has no turnover in the State during the tax period, the turnover figures of the last preceding tax period in which turnover occurred must be used to determine the exempt ratio (E / F).