Input tax credit
Shaikh Shahnawaz (71 Points)
04 December 2018
Can we take ITC if sale is nil rated & purchase are taxed @ 5%.
6 Replies
Sundararajan S
(Final Student of ICAI)
(1764 Points)
Replied 04 December 2018
No, you have to reverse as per Section 17 and 18
pritesh
(CA Final student)
(7101 Points)
Replied 04 December 2018
You cannot take itc on input supply where you have not charged tax on out put supply... except in case of zero rated supply.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 04 December 2018
No has to reverse the ITC if your outward supply is Nil Rated (Rule 42 CGST Act)
Shaikh Shahnawaz
(71 Points)
Replied 05 December 2018
Can we take those ITC in any other outward taxable supply
pritesh
(CA Final student)
(7101 Points)
Replied 05 December 2018
If the purchase goods which you are using for providing taxable and nil rated supply thn you can take ITC but yoy should have follow the provision of rule 42&43.
pls refer below
https://www.indiafilings.com/learn/rules-42-43-cgst-rules/
pls refer below
https://www.indiafilings.com/learn/rules-42-43-cgst-rules/
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