Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

ITC reversal on exempted supplies

Lalit Agrawal (executive) (25 Points)

07 December 2023

Dear sir,

kindly suggest that where we have report ineligible ITC on exempted supplies in gstr-3b and gstr9 return.

pl advice

Reply
Follow
Share

4 Replies

Bhanu (hyderabad) (1653 Points)
Replied 07 December 2023

Your question appears to be incorrect.
Exempt supplies refer to transactions without a tax element, meaning no Input Tax Credit (ITC) is available.
so there is no question of ineligible ITC on exempted supplies.

Upgrade to CAclubindia Pro. Subscribe Now!

Lalit Agrawal (executive) (25 Points)
Replied 07 December 2023

We have manufacturing exempted as well as taxable goods and we have not take ITC on inputs used in manufacturing exclusively exempted product so that ineligible ITC need to shown in GST return.

pl advice where to report in GST return 3b and annual return.

Thanks in advance