GST demand notice for ITC reversal against exempted supply.

Save Share

This query is : Open

Quick Summary

A client has received a GST show cause notice for FY 2018-19, demanding ₹50,000 for the proportionate Input Tax Credit (ITC) used against exempt supplies. The client asserts that all claimed ITC was exclusively used for taxable supplies and none for exempted goods or personal use. The query seeks guidance on how to respond to this notice, including providing detailed calculations and evidence like invoices to prove the ITC was solely applied to taxable items.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
Follow

07 February 2024 Sir, One of my client has received a SCN against FY 2018-19
from GST deptt.raising a demand of 50,000/- against Proportion of
commons ITC against exempt supply. Sir, my client has used his entire
ITC against his Supply only. No ITC claimed on exempted goods, No any ITC
against personal or any other use except his business purpose. How to proceed
with this said demand ?