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Common ITC reversal under GST, Goods and Services Tax - GST

Issue Id: - 118092
Dated: 1-8-2022
By:- Muthukumar Muthunarasimhan
Common ITC reversal under GST

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Dear Experts,

As per ITC reversal of common input and input services and capital goods used for manufacturing taxable and exempted supplies by the manufacturer in one GSTIN. Apart from manufacturing turnover there is some traded value of the same taxable products.

My query pertains, as per formula of common ITC reversal , total turnover means inclusive of traded turnover should be included or excluded. Kindly clarify.

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Showing Replies 1 to 2 of 2 Records

1 Dated: 1-8-2022
By:- Amit Agrawal

Under formula prescribed in Rule 42 & 43, ‘F’ is the total turnover in the State of the registered person during the tax period.

Neither Section 17 (1) & (2) nor above rules talks about separate calculations between manufacturing & non-manufacturing supplies OR business-segment wise calculations.

So, total turnover - in the fact of your case - will include value of supplies from trading as well as manufacturing activities.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

2 Dated: 5-8-2022
By:- Ganeshan Kalyani

Trading turnover also to be considered for the purpose of common credit calculation.


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