Gst input credit on propionate
This query is : Resolved
Deepak Kumar
(Querist)
21 February 2019
if we are providing taxable services as well as exempt services, How to determine the credit attributable to exempt supplies.
please let me know the formula of proportionate ?
please let me know the formula of proportionate ?
CA.Raghavendra
(Expert)
21 February 2019
Hi,
First Identify the Credit in the following Manner.
> Credit Attributable to Taxable Supplies.(Eligible to Avail Credit)
> Credit Attributable to Exempt Supplies (Not Eligible to Avail Credit)
> Remaining is Common Credit (Contains both Eligible & Non eligible Credit)
in this 3 rd case apply below formula to know Eligible Credit
ITC of Exempted Supplies = (Exempted Turnover/Total turnover)* Common Credit
The above formula will help to get ITC related to Exempted supplies.
> From the total Common credit above credit is reduced.
Then, the remaining available credit is Eligible to Avail.
First Identify the Credit in the following Manner.
> Credit Attributable to Taxable Supplies.(Eligible to Avail Credit)
> Credit Attributable to Exempt Supplies (Not Eligible to Avail Credit)
> Remaining is Common Credit (Contains both Eligible & Non eligible Credit)
in this 3 rd case apply below formula to know Eligible Credit
ITC of Exempted Supplies = (Exempted Turnover/Total turnover)* Common Credit
The above formula will help to get ITC related to Exempted supplies.
> From the total Common credit above credit is reduced.
Then, the remaining available credit is Eligible to Avail.
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