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is GST Applicable on inputs?

yagantipullareddy (accounts officer) (51 Points)

24 April 2019

A company purchases taxable item and give it to third-party with the exact purchase rate towards inputs.

Third party produces exempted product using inputs.

is GST applicable on inputs transfers to third-party?

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5 Replies

Sajal Mandal (294 Points)
Replied 24 April 2019

I think this is not a input transfer, this is outward supply. So GST applicable.

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CA Shweta Rupeja (Chartered Accountant ) (65 Points)
Replied 24 April 2019

Yes GST is applicable since it is transfer and hence considered as Supply

yagantipullareddy (accounts officer) (51 Points)
Replied 24 April 2019

What if ship to third-party & bill to company?

yagantipullareddy (accounts officer) (51 Points)
Replied 24 April 2019

And can company take input credi in this case? At present company does not take input credit as it sells exempted item.

Padmanathan Kv (2127 Points)
Replied 25 April 2019

Even if its a bill to ship to, it is still a outward supply liable to GST. Your company can take the credit as your company is making taxable outward supply. Only the third party is restricted from taking credit as per the provisions of section 17