i m start agriculture farm to cultivate some medicinal plants as well as greens
i m also registered with gst
i m take lease land from farmers
and also labour wages to farmers
now i m purchase agriculture tools and machineries
the items are exempt from gst
can i ask for refund of input tax paid by the machineries
No , cant take refund , instead , take the input for the same & has to reverse on montly basis for 5 years , plz go through below formula
1. Calculate monthly credit - ITC ÷ 60, say X
2. Calculate ITC attributable to exempt supply - X x Exempt Supply ÷ Total Supply for the month
3. Reverse the same for every month
4. Pay interest as well 😂
Check rule 43(c)
Or
can Ineligible the input of Machinery purchased ( but not advisable to do so)
CAclubindia
