In case of a supply of capital goods, where the ITC is taken at the time of purchase, The tax will be calculated as per the provisions of section 18(6). The higher of following two shall be the tax payable:

• ITC taken as reduced by 5% for each quarter.
• GST on transaction value.

(6)       In case of supply of capital goods or plant and machinery, on which input tax credit has been taken, the registered person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery determined under section 15, whichever is higher:
Provided that where refractory bricks, moulds and dies, jigs and fixtures are supplied as scrap, the taxable person may pay tax on the transaction value of such goods determined under section 15.