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ITC on paper for newsprint

23 August 2022

Suppose I run a newspaper and have ITC from purchasing papers for newsprint, can I claim that ITC for setting off liabilities that arises from advertisement in my newspaper?

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5 Replies

sabyasachi mukherjee (27117 Points)
Replied 23 August 2022

Yes you can

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Sai Allu (754 Points)
Replied 23 August 2022

Advertisements play a very important role in the success of every business. It is estimated that Advertising expenditure for the Calendar Year 2018 would be approximately 0.45% of the Indian GDP.

sabyasachi mukherjee (27117 Points)
Replied 24 August 2022

Irrelevant in the discussion

Laltha Zuala (153 Points)
Replied 24 August 2022

Some people are saying ITC cannot be claimed as per Rule 42. I am confused.

Yogin (Assistant Manager) (78 Points)
Replied 31 August 2022

PRINTED NEWSPAPER SALE IS EXEMPT BUT ADVERTISEMENTS PUBLISHED ARE TAXABLE UNDER GST. YOU ARE CLAIMING THE ITC OF PAPER, INK, PLATES ETC. AGAINST OUTPUT TAX OF ADVERTISEMENTS PUBLISHED.

Where common taxable inputs and/or services are used for making both taxable and non-taxable/ exempt supplies then the quantum of credit on such inputs/input services is restricted to the credit attributable to taxable supplies. In other words the total credit will be subject to pro-rata reversals i.e. reversal in proportion to value of non-taxable/exempt supplies. (see Rule 42 of the CGST Rules, 2017 for computation of credit in this case).

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