Itc on supply of exempt goods

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CHETAN (Querist)
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21 April 2019 IF A TRADERS WHO IS A NORMAL TAXPAYER & SUPPLY EXEMPTED GOODS BUT PURCHASED DABBI'S (PRIMARY BOXES FOR PACKAGING OF FINALPRODUCT) AND PAY GST ON IT. CAN HE CLAIM ITC ON PURCHASE OF THOSE SMALL BOXES

CA Anita Bhadra

CA Anita Bhadra (Expert)
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21 April 2019 No , You can not claim ITC on input for supplying exempted Goods
As per - Sec 17(2) Of CGST Act
Where the goods or services or both are used by the registered person partly for effecting TAXABLE SUPPLIES under this Act or under the Integrated Goods and Services Tax Act and partly for effecting EXEMPT SUPPLIES under the said Acts, the
amount of credit shall be restricted to so much of the input tax as is attributable to the said TAXABLE supplies including zero-rated supplies.