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Reversal of Common Input Tax Credit, Goods and Services Tax - GST

Issue Id: - 113687
Dated: 1-5-2018
By:- HITESH DEDHIA

Reversal of Common Input Tax Credit


  • Contents

Reversal of Common Input Tax Credit under GST is required for Exempted Supplies/Services. The Company has earned Interest on Loans & Advances/Deposit. Whether Interest income is considered as exempted for Calculation of Proportionate Exempted Sales to Taxable Sales.

Posts / Replies

Showing Replies 1 to 6 of 6 Records

Page: 1


1 Dated: 1-5-2018
By:- DR.MARIAPPAN GOVINDARAJAN

In my view it is not. It is applicable to the exempted supply of goods/services or both.


2 Dated: 1-5-2018
By:- KASTURI SETHI

Answer is yes. It is normal/routine interest. The amount of interest earned on account of default payment/delayed payment is taxable under GST. See the definition of taxable value under Section 15 of CGST ACT, 2017


3 Dated: 1-5-2018
By:- DR.MARIAPPAN GOVINDARAJAN

The interest is not on default but on loans and advances.


4 Dated: 2-5-2018
By:- KASTURI SETHI

Dr.Govindarajan Sir,. I agree with you in toto.


5 Dated: 2-5-2018
By:- Himansu Sekhar

Loan is not a service. Interest is also not a supply at all.


6 Dated: 2-5-2018
By:- YAGAY and SUN

Interest does not fall under the category/definition of supply.


Page: 1

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