A company ABC corp. is manufacturing as well as is into trading of FMCG products. Both the business are being done under same GST registration number.
can ABC corp utilise input availed under trading activities against liability for selling of manufactured goods ?
is there any rule in GST which explicitly prohibits the ABC corp from doing so ?
Thanks for your reply.
Is there any specific section which governs the rules for what ITC can be utilized ?
No there is no restriction. ITC can be used for any business under the same GSTIN.
No there is no such restriction mentioned in the Act, Hence the utilisation is implied.
Since GST is levied on both manufacture and trading activity (unless exempted etc), ITC cannot be restricted.
No as per GST ABC corp can take Input tax credit (ITC) on all goods
Chirag N Shah & Associates
Mumbai
CA Inter
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Triveni Turbine Limited
Bengaluru
CA
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