Hi,
A company procured an exempted agricultural produce from farmers and which is used to produce taxable as well as exempted final product.the company pay GST for procurement related expenses of such agricultural produce.
Can it claim ITC on it?
5 Replies
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 07 October 2019
As per sectikn 17(2) & rule 42 of CGST Act Yes..... you can avail ITC in proportion to ITC attributed to taxable supply
Baskar
(CMA)
(93 Points)
Replied 08 October 2019
Company procured milk from farmers and stored in a separate place. We have incurred some expenses in the form of consumables and cleaning items in the place where milk was stored and chilled. And then the chilled milk transferred to the factory to produce taxable as well as exempted final product.
My question is can we take ITC on the expenses incurred in storage area of milk?
Pls advice me with appropriate section and rules.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 08 October 2019
Yes you can claim ITC ......In term of Section 16 of CGST Act Input can be claim on expense incurred in course of business or furtherance of Business.
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