REGARDING VALUE OF SUPPLY
This query is : Resolved
20 December 2019
Respected Sir\Medam,
The Matter is - we cover a part of factory with Tin Shed of Iron, the area use for factory purpose, now my query is that whether I am eligible to get ITC on such material or whether its fall under building material,
Please guide me.
Kindly answer my query.
The Matter is - we cover a part of factory with Tin Shed of Iron, the area use for factory purpose, now my query is that whether I am eligible to get ITC on such material or whether its fall under building material,
Please guide me.
Kindly answer my query.
20 December 2019
WHAT WILL BE THE VALUE OF NON GST SUPPLY IN CASE OF SALE OF PETROL AND DIESEL WHETHER VALUE INCLUDE VAT AMOUNT OR NOT ?
21 December 2019
Aggregate value of Non GST supply should be inclusive of VAT amount .
25 December 2019
Your query confusing. You can avail ITC only on the materials/services which are not blocked u/s 17(5). You can call me on 9901841150 for more clarity.
02 August 2024
### **ITC on Material for Factory Construction**
For the purchase of materials like tin sheds or iron sheets used to cover a factory, determining whether you can claim Input Tax Credit (ITC) depends on the nature of the materials and their use.
**Here’s the guidance:**
1. **Materials Used for Factory Construction:**
- Generally, **ITC is not available** on goods or services used for the construction of immovable property (e.g., buildings or sheds), except when the property is used for further supply of taxable services or when it's a plant and machinery.
2. **If Materials are Part of Plant and Machinery:**
- If the tin shed or iron sheets are part of plant and machinery rather than construction of a building, ITC may be available. This depends on whether the items are considered integral to the manufacturing process.
3. **Refer to GST Rules:**
- GST laws generally restrict ITC on construction-related materials unless specifically exempted or used in a manner allowed under GST provisions. Refer to Section 17(5) of the CGST Act for specifics.
**For detailed advice, consider consulting a GST professional** to ensure compliance with the latest regulations.
### **Value of Non-GST Supply for Petrol and Diesel**
For the sale of petrol and diesel, which are generally subject to VAT/CST rather than GST, the value of the supply for tax purposes includes the following:
1. **VAT/CST Excluded from GST Supply Value:**
- The value of non-GST supplies (like petrol and diesel) should **exclude VAT**. In other words, the VAT amount is not included in the value of the non-GST supply for determining taxable value.
2. **Value of Supply Calculation:**
- When calculating the value of non-GST supplies, such as petrol and diesel, for reporting purposes, **ensure VAT or other applicable state taxes are excluded** from the taxable value.
**Summary:**
- **ITC on Materials:** Generally, ITC on construction materials like tin sheds may not be available unless they are used as part of plant and machinery.
- **Value of Non-GST Supply:** For petrol and diesel, the value should exclude VAT or other state taxes.
For accurate handling and reporting, always refer to the latest GST guidelines and consult a tax professional.
For the purchase of materials like tin sheds or iron sheets used to cover a factory, determining whether you can claim Input Tax Credit (ITC) depends on the nature of the materials and their use.
**Here’s the guidance:**
1. **Materials Used for Factory Construction:**
- Generally, **ITC is not available** on goods or services used for the construction of immovable property (e.g., buildings or sheds), except when the property is used for further supply of taxable services or when it's a plant and machinery.
2. **If Materials are Part of Plant and Machinery:**
- If the tin shed or iron sheets are part of plant and machinery rather than construction of a building, ITC may be available. This depends on whether the items are considered integral to the manufacturing process.
3. **Refer to GST Rules:**
- GST laws generally restrict ITC on construction-related materials unless specifically exempted or used in a manner allowed under GST provisions. Refer to Section 17(5) of the CGST Act for specifics.
**For detailed advice, consider consulting a GST professional** to ensure compliance with the latest regulations.
### **Value of Non-GST Supply for Petrol and Diesel**
For the sale of petrol and diesel, which are generally subject to VAT/CST rather than GST, the value of the supply for tax purposes includes the following:
1. **VAT/CST Excluded from GST Supply Value:**
- The value of non-GST supplies (like petrol and diesel) should **exclude VAT**. In other words, the VAT amount is not included in the value of the non-GST supply for determining taxable value.
2. **Value of Supply Calculation:**
- When calculating the value of non-GST supplies, such as petrol and diesel, for reporting purposes, **ensure VAT or other applicable state taxes are excluded** from the taxable value.
**Summary:**
- **ITC on Materials:** Generally, ITC on construction materials like tin sheds may not be available unless they are used as part of plant and machinery.
- **Value of Non-GST Supply:** For petrol and diesel, the value should exclude VAT or other state taxes.
For accurate handling and reporting, always refer to the latest GST guidelines and consult a tax professional.
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