Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 
Discussions Forum
Home Forum Goods and Services Tax - GST This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

← Previous Next →

Determination of ITC - partly used for exempt supply and partly used for taxable supplies, Goods and Services Tax - GST

Issue Id: - 114816
Dated: 1-4-2019
By:- gvenugopal g
Determination of ITC - partly used for exempt supply and partly used for taxable supplies

  • Contents

Sirs, We purchase Urad Dall (HSN # 07139091) and paid IGST (ITC), The item being partly used for manufacturing exempt supplies and remaining for taxable supplies. How to adjust ITC against GST on outwards supplies in both exempted and taxable? Kindly suggest.

Post Reply

Posts / Replies

Showing Replies 1 to 3 of 3 Records

1 Dated: 1-4-2019
By:- KASTURI SETHI

You are entitled to avail proportionate ITC. This can be illustrated with the following example:-

Suppose you have purchased raw material(inputs/goods) valued at ₹ 10,000/- IGST paid @5% i.e. 500/-. and two products were manufactured out of these inputs. One product of the value of ₹ 8000/- attracted CGST and SGST @ 18% (9% each) and other product value of ₹ 8000/- was exempt. Thus ratio of taxable and exempt supply is 50 : 50%..

Thus you are entitled to avail only 50% of ITC.


2 Dated: 1-4-2019
By:- KASTURI SETHI

In continuous of my reply, Section 17(2) of CGST Act, 2017 refers.


3 Dated: 1-4-2019
By:- gvenugopal g

Dear Kasturi Sethi Ji,

Thank you very much for your valuable reply for the query raised by me.


1

Post Reply

← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map || ||