I am distributor for Britinia, Nestley, Haldiram & many companies for Biscuits & other Food items.
Sellers charge GST while selling to me.
Considering sub-section (1) of section 16 and subsection (1) of section 18 contains, ITC will not be available in respect of the following,
namely:
- food and beverages, except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply.
Considering above section, and considering that I am a distributor, Can I take input credit on purchase of Biscuits & other food items, while I sell products to retailers by charging GST on it ?
CAclubindia
