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Supply of exempt Goods

22 July 2020

I supply exemption goods and I have my registration registered in the normal scheme if I purchase it or not I can claim it

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6 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 22 July 2020

Your query is not clear
pls elobrate your query
I think You are talking about ITC on exempted Goods
ITC on Exempted Good are not available, you can't claim ITC on supply of exempted Goods.

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LAW STUDIO ASSOCIATES (252 Points)
Replied 22 July 2020

Why I can't claim itc

Ramya Bhat (254 Points)
Replied 22 July 2020

For exempted goods no ITC avilble

chethan data (298 Points)
Replied 22 July 2020

Because if it's outward supply exempted, non taxable hence no itc on pertaining on those supply
if no taxable supply how to claim itc on inward supply
just like matching principles

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 23 July 2020

Goods exempted under GST already enjoy 0% GST. ITC cannot be claimed for inputs used in such exempted goods as it will lead to negative taxation. And as per a matching concept also if your outward supply is exempt than you can't claim ITC on purchase of same, because on exempted good you need not to pay any GST.