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ITC of TMT bar can be use for output gst for sale of Cotton.

01 January 2024

If one registered firm buying Tmt Bar and getting GST credit on it and another product selling like cotton, so my question is credit input of TMT bar can be use in Cotton or other commodity item like Ginger, Eliachi etc.

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9 Replies

RAJA P M ("Do the Right Thing...!!!") (127173 Points)
Replied 01 January 2024

Your query is not clear...

You said your sales product and also said what you purchased...

But, You can't explain what are use of the product (TMT Bars) you purchased...

lalit sangani (5 Points)
Replied 01 January 2024

date - 05/12/2023

purchase TMT Bar - Rs. 100000

ITC on TMT bar 18% - 18000

date - 06/12/2023

Sale Cotton - Rs. 200000 (Previous stock available)

Output GST 5% - 10000

Total ITC available 18000 in current period which is received from purchase of TMT bar, and output liability is10000 which is sale from cotton, here two different item available, so my question is that can I use ITC of one goods for other goods output liability.

RAJA P M ("Do the Right Thing...!!!") (127173 Points)
Replied 01 January 2024

What are use of the product (TMT Bars)...??

It's mean why you purchase TMT bars...??

lalit sangani (5 Points)
Replied 01 January 2024

Both Item purchased for trading purpose,

jacinthamary (accountant) (848 Points)
Replied 01 January 2024

If you are a dealer who sells from hardwares to farm products like cotton then you can use the ITC. Before that conform that ITC on TMT bars and Output gst on cotton comes under same category ie. Both should be IGST or both should come under CGST and SGST.