1.A Ltd deals in the sale of exempted,nil rate and non GST outward supply and outward supply on reverse charge, A Ltd purchased furniture and computer for office use, then this input relating to furniture and computer is considered as common GST input or not?
2.Rule 42,43 itc reversal is applicable on the furniture and computer input? Then which rule for reversal ? Rule 42 or rule 43 ?
No ... the common credit means that part of input tax credit which cannot be identified specifically to taxable supply or Exempted Supply or non-business purpose, rather commonly used for taxable, Exempted and for Non-business supplies.
But in your case you are not having Taxable Supplies.
Perfect example of Common Credit is mobile phone bill of Proprietor , which used in both personal calls & business calls.
2. When capital goods used for making both. taxable & non taxable/Exempted supplies Rule 43 is applicable.
Note : As you are not having any taxable supplies. so you must reverse the whole ITC on capital goods in same month , because if you go by rule 43 (monthly reversal) , the interest is applicable in term of Rule 43(1)(h) need to be paid.
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