Dear Sir,
We are doing the business of Jaggery Cubes, in this we are purchasing pouches which is taxable so whether we are applicable to take the take return un the form of GSTR3B
9 Replies
Umesh Bhise
(119 Points)
Replied 15 November 2020
Dear Sir we are Registered, whether we can Claim the Consumables Purchase Tax? as per our CA he is saying that only we can claim Raw Material Tax...
Shivam RC
(Student)
(23683 Points)
Replied 15 November 2020
As per the Provision of Section 16(1) of the CGST Act 2017, Input Tax Credit (ITC) on Inputs, Input Services and Capital Goods which are used or intended to be used in the course or furtherance of business can be claimed provided that all the 4 conditions of claiming ITC U/s 16(2) has been satisfied and subject to Blocked Credit under Section 17(5) of the CGST Act 2017.
Now the Consumables ( Packing materials, etc ) are an important part of the Finished Goods ( Jaggery ), which is essential to sell your final product. So it is your input. The term Input as defined U/s 2(59) of the CGST Act 2017 means "any goods other than capital goods used or intended to be used by Supplier in the course or furtherance of business." So the consumables ( goods ) are your inputs which are being used in the course of business.
Hence as per my personal opinion, you can claim ITC on GST paid on purchase of consumables.
But I want to know 1 thing Sir. Are you only in the business of selling jaggery cubes ??? Are you selling it under a registered Brand Name ??? And as far as I know Jaggery attracts NIL Rate of Tax under HSN Code 1701. The answer will be different for different situation...
Now the Consumables ( Packing materials, etc ) are an important part of the Finished Goods ( Jaggery ), which is essential to sell your final product. So it is your input. The term Input as defined U/s 2(59) of the CGST Act 2017 means "any goods other than capital goods used or intended to be used by Supplier in the course or furtherance of business." So the consumables ( goods ) are your inputs which are being used in the course of business.
Hence as per my personal opinion, you can claim ITC on GST paid on purchase of consumables.
But I want to know 1 thing Sir. Are you only in the business of selling jaggery cubes ??? Are you selling it under a registered Brand Name ??? And as far as I know Jaggery attracts NIL Rate of Tax under HSN Code 1701. The answer will be different for different situation...
Umesh Bhise
(119 Points)
Replied 15 November 2020
Dear Sir, we are basically in Enzyme Manufacturing Business, Jaggery is secondary We are selling in our Company Brand and it is Nil Rate, but the required packing material is Taxable....
ayusmita
(Tax consultant)
(5885 Points)
Replied 16 November 2020
List of good and service not eligible for input tax credit check that list if that not comes under that then claim
Umesh Bhise
(119 Points)
Replied 17 November 2020
Dear Sir / Madam, from which web we will get the list of items which are ineligible for input tax and eligible for input tax.
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