Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

ITC in purchase of Tin sheet

Manoj Patel (100 Points)

12 July 2020

Agar me apane business ke liye Tin shed banwata hu to kya me usake against ITC credit le sakta hu.

Reply
Follow
Share

8 Replies

Ravi SADhiyan (Practice) (4510 Points)
Replied 12 July 2020

Originally posted by : Manoj Patel
	Agar me apane business ke liye Tin shed banwata hu to kya me usake against ITC credit le sakta hu.

You charge as a revenue and claim ITC

Upgrade to CAclubindia Pro. Subscribe Now!

Manoj Patel (100 Points)
Replied 12 July 2020

Matalab

Maryam Hasan Meem (Student) (448 Points)
Replied 12 July 2020

Agar aap Composition scheme me cover ho toh aap ITC claim nai kar sakte kyunki aap already government ko low rate pe tax pay karte hai under composition scheme me.

on the other side, agar aap Normal scheme me registered ho toh definately aap ITC claim kar sakte hai, uske liye aapko GSTR 2 me mention karna hoga ke aapne tin sheds purchased kiye hai apne business ke liye as per your tax invoice within prescribed time.

1 Like

KRISSHNAN KP (4215 Points)
Replied 12 July 2020

Under section 10 there is no ITC

Manoj Patel (100 Points)
Replied 12 July 2020

Pls discribe section 10

Upgrade to CAclubindia Pro. Subscribe Now!

Maryam Hasan Meem (Student) (448 Points)
Replied 12 July 2020

1. taxpayer whose turnover is below Rs 1.5 crore* can opt for Composition Scheme.

In case of North-Eastern states and Himachal Pradesh, the limit is now Rs 75* lakh.

As per the CGST (Amendment) Act, 2018, a composition dealer can also supply services to an extent of 10%of turnover, or Rs.5 lakhs, (whichever is higher).

This amendment will be applicable from the 1st of Feb, 2019. Further, GST Council in its 32nd meeting proposed an increase to this limit for services providers on 10th Jan 2019

*Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover

2. who can not opt for composition scheme?

The following people cannot opt for the scheme-

Manufacturer of ice cream, pan masala, or tobacco

A person making inter-state supplies

A casual taxable person or a non-resident taxable person

Businesses which supply goods through an e-commerce operator

3. what are the conditions for availing composition scheme?

The following conditions must be satisfied in order to opt for composition scheme:

No Input Tax Credit can be claimed by a dealer opting for composition scheme

The dealer cannot supply GST exempted goods

The taxpayer has to pay tax at normal rates for transactions under the Reverse Charge Mechanism

If a taxable person has different segments of businesses (such as textile, electronic accessories, groceries, etc.) under the same PAN, they must register all such businesses under the scheme collectively or opt out of the scheme.

The taxpayer has to mention the words ‘composition taxable person’ on every notice or signboard displayed prominently at their place of business.

The taxpayer has to mention the words ‘composition taxable person’ on every bill of supply issued by him.

APPLICABLE GST RATES:

• for manufacturers & traders (goods)- @ 1%(CGST 0.5%+ SGST 0.5%).

• for Restuarant (not serving alcohol) - @ 5%(CGST 2.5%+ SGST 2.5%).

• for other service providers - @ 6%(CGST 3%+ SGST 3%).

1 Like

Himanshu Varshney (9 Points)
Replied 12 July 2020

Yes, you can claim ITC against construction of Tin shed considering it as capital goods ......however, if you have opted for composition scheme under section 10 of CGST act , then no ITC can be claimed

1 Like