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ITC on non GST goods

28 April 2021

A petrol bunk dealer purchase and sold non GST goods with GST goods (lube oil).
The ITC value for SSLF, Addl. recovery fees, with lube oil purchase. The output taxable value related to lube oil only.
In this circumstances ITC on non GST goods are eligible to adjust in lube oil sale OPT or not?
pl.clarify any experts.

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8 Replies

CA Altamush Zafar (GST Consultant) (15986 Points)
Replied 28 April 2021

If you are charging gst on outward supply then you can claim itc on inward supply

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CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 28 April 2021

Agree with Zafar

CMA Poornima Madhava (CMA) (13112 Points)
Replied 28 April 2021

ITC on non-gst goods (like cenvat credit, VAT credit) cannot be set off against GST liability.

CA Altamush Zafar (GST Consultant) (15986 Points)
Replied 28 April 2021

ITC won't exist for non gst goods

SRIDARAN V (55 Points)
Replied 28 April 2021

Petrol bunk dealer having services value like SSLF/Addl.fee recovery etc. and paid the GST tax to indian oil company the same ITC is set off lubricating oil OPT it eligible or not.
not means why the oil company collect the GST tax on the service value of petroleum products. pl who know the correct remedy.

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CA Altamush Zafar (GST Consultant) (15986 Points)
Replied 28 April 2021

Eligible as per the conditions of section 17. You will have to reverse certain portion of itc which is common to both petrol and lubricants

Lotus Agrawal (Practice) (1361 Points)
Replied 28 April 2021

Agreed with Mr zafar

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 28 April 2021

Yes agree with CA Altarmush
ITC is eligible in accordance with provision of Section 17(2) r/w rule 42 of CGST Act .
In your case you need compute reversal of credit which attributable to Taxable & Non Taxable Supply.

Note : As the oil company collect GST on Service Value because the petroleum products are not cover under GST but Services rendered for consideration is supply under section 7 of CGST Act .