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Input Quires

15 November 2020

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

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9 Replies

JATINDER KUMAR (Accountant) (3662 Points)
Replied 15 November 2020

Unable to understand

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Shivam RC (Student) (23683 Points)
Replied 15 November 2020

R u registered under GST ???

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...

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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....