Garment dealers selling items below £1000, who charge 5% output GST, are eligible to claim Input Tax Credit (ITC). This includes ITC on capital goods like air conditioners and on input services such as professional fees. Therefore, dealers can benefit from the 5% output GST rate with full ITC available.
06 February 2025
sir, if the dealer is dealing in garments below 1000. output gst is charged @ 5%. can he claim ITC on capital goods e.g. Air conditioner & ITC on input services e.g. professional fees ?
means output gst rate is 5% with full ITC or 5% with limited ITC ?