Goods purchased and input available
This query is : Resolved
26 March 2025
Can I adjust commission output gst with goods input gst of iron goods in a proprietorship firm ? Please clarify?
26 March 2025
Whether the commission business is in relation to the goods trading or separate one.
26 March 2025
Commission will be received for iron goods
26 March 2025
Yes, eligible for same line of business.
28 March 2025
Yes, you can adjust or set off the GST liability on commission (output GST) with the input GST paid on iron goods in a proprietorship firm, provided certain conditions are fulfilled:
✅ Conditions for Set-Off (Input Tax Credit Eligibility):
Goods are used for business - The iron goods should be used or intended to be used in the course or furtherance of business.
Tax Invoice Available - You must have a valid tax invoice or other prescribed document.
Supplier GST Compliant - Supplier should have uploaded the invoice in GSTR-1 and paid tax.
GST Paid on Inputs - GST must have been actually paid to the supplier.
Blocked Credit Not Applicable - Iron goods must not fall under the blocked credit list under Section 17(5) of the CGST Act.
Proprietorship Status - GST law treats proprietorship as a single entity, so output GST on commission and input GST on iron goods are part of the same GST registration.
✅ Conditions for Set-Off (Input Tax Credit Eligibility):
Goods are used for business - The iron goods should be used or intended to be used in the course or furtherance of business.
Tax Invoice Available - You must have a valid tax invoice or other prescribed document.
Supplier GST Compliant - Supplier should have uploaded the invoice in GSTR-1 and paid tax.
GST Paid on Inputs - GST must have been actually paid to the supplier.
Blocked Credit Not Applicable - Iron goods must not fall under the blocked credit list under Section 17(5) of the CGST Act.
Proprietorship Status - GST law treats proprietorship as a single entity, so output GST on commission and input GST on iron goods are part of the same GST registration.
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