Gst creditt
This query is : Resolved
ACCOUNTS08
(Querist)
05 December 2019
Is ITC reversal under Rule 42 and 43 of ITC Rules applicable to an NBFC opting to avail 50% credit
CA Anita Bhadra
(Expert)
06 December 2019
Yes
there are 2 options available to NBFC for Input Tax Credit
Avail every month an amount equal to 50% of eligible input tax credit on inputs, capital goods and input services in that month and the rest shall lapse, subject to Rule 3 of ITC (section 17(4) of CGST Act, read with Rule 3 of ITC)
As per Rule 3 :- NBFC shall not take credit for tax paid towards input or input services used for non business .
For further details , pl refer following link :
https://taxguru.in/goods-and-service-tax/gst-on-non-banking-finance-companies-nbfcs.html
there are 2 options available to NBFC for Input Tax Credit
Avail every month an amount equal to 50% of eligible input tax credit on inputs, capital goods and input services in that month and the rest shall lapse, subject to Rule 3 of ITC (section 17(4) of CGST Act, read with Rule 3 of ITC)
As per Rule 3 :- NBFC shall not take credit for tax paid towards input or input services used for non business .
For further details , pl refer following link :
https://taxguru.in/goods-and-service-tax/gst-on-non-banking-finance-companies-nbfcs.html
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