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ITC on Raw Materials or Machine.

10 June 2017

If a machine / raw material purchased and partially used for producing Taxable Finished Products, then how can ITC be claimed and what will be the base of apportionment. Please clarify.

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8 Replies

PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 10 June 2017

Yes itc is available.

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Jailendra Kumar (81 Points)
Replied 10 June 2017

How can i apportion in above case?

PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1443 Points)
Replied 10 June 2017

give en example

Preeti (Team_GSTSoln) (Team GST Experts) (1926 Points)
Replied 10 June 2017

apportionement is 1 del itc exclusively for non tax supply

2. then del itc exclusively for tax supply

3 then from common itc apply turnover ratio

simplest general way i am telling u. need more del depends upon case to case

Jailendra Kumar (81 Points)
Replied 10 June 2017

Suppose a boiler is purchased to generate steam in milk processing plant, steam is used to process milk and some quantity of milk is used for liquid milk sale and some for milk products. In that case how can i claim ITC of GST paid on purchase of boiler. Another case is Sugar , which is partially used for tax free and taxable products.