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Home Acts & Rules GST Draft-Bills-Reports FAQ on GST dated 21.9.2016 based on Draft Model GST Chapters List Chapter 10 Input Tax Credit This

Question 8 - Where goods and/or services received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person? - FAQ on GST dated 21.9.2016 based on Draft Model GST

FAQ on GST dated 21.9.2016 based on Draft Model GST
Chapter 10
Input Tax Credit
  • Contents

Q 8. Where goods and/or services received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?

Ans. As per section 16(6) of MGL, the input tax credit of goods and / or service attributable to only taxable supplies can be taken by registered taxable person. The amount of eligible credit would be calculated in a manner to be prescribed in terms of section 16(7) of the MGL read with GST ITC Rules (yet to be issued). It is important to note that credit on capital goods also would now be permitted on proportionate basis.

 
 
 
 

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