Query on ITC on GST

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This query is : Resolved

Quick Summary

A company producing cattle feed and meat products, which uses agency-supplied personnel, is asking about claiming Input Tax Credit (ITC) on the GST charged by the manpower agency. Since the company deals with both taxable (meat products) and exempt (cattle feed) supplies, ITC can only be claimed proportionally, as it's only permissible on taxable goods and services.

abhijit majumder

abhijit majumder (Querist)

10 February 2025 Sir
Our Company engage in production of cattle feed and Meat and meat products.
We engaged manpower through agency ie all of our manpower are Manpower Supply Agency deployed personnel.
While raising bills at the end of every month by such Manpower Supply Agency they charge GST on the manpower supply service provide to the company.
My query is , does our Company can utilize such GST(charged by the Manpower Supply Agent)
as ITC subsequently.
Our company have to pay GST on production & processing of Meat products however Cattle feed are exempted from GST Liability .
Regards
Abhijit

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

10 February 2025 As you are dealing in taxable as well as exempted supplies, you are required to use ITC only proportionately as ITC is allowed only on taxable supplies.

abhijit majumder

abhijit majumder (Querist)

11 February 2025 Thanks for early reply.
Abhijit

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