GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
This query is : Resolved
15 October 2026
A client is registered under GST Act and is engaged in the manufacturing of cattle feed. The outward supply of cattle feed manufactured and sold by client is exempt from GST.
However, the client makes purchases of raw materials, packing materials and other goods from registered suppliers, on which GST is charged and paid. The Client also files GST Returns, including GSTR-1 and GSTR-3B.
in this situation, I seek expert clarification on the GST treatment of such purchases, the eligibility and treatment of any related input tax credit, the reporting requirements in GSTR-3B and the applicable provisions of the GST ACt, 2017, the GST Rules, 2017and relevant CBIC circulars or notifications.
thank you.
However, the client makes purchases of raw materials, packing materials and other goods from registered suppliers, on which GST is charged and paid. The Client also files GST Returns, including GSTR-1 and GSTR-3B.
in this situation, I seek expert clarification on the GST treatment of such purchases, the eligibility and treatment of any related input tax credit, the reporting requirements in GSTR-3B and the applicable provisions of the GST ACt, 2017, the GST Rules, 2017and relevant CBIC circulars or notifications.
thank you.
18 October 2026
ITC Status: Ineligible under Section 17(2) read with Rule 42 due to exempt outward supplies.
Financial Impact: GST paid on purchases becomes an added cost of purchase/inventory.
GSTR-3B Filing: Ineligible credit must not be claimed or must be reversed in Table 4(B).
GSTR-1 Filing: Exempt cattle feed sales are reported under Table 8.
Financial Impact: GST paid on purchases becomes an added cost of purchase/inventory.
GSTR-3B Filing: Ineligible credit must not be claimed or must be reversed in Table 4(B).
GSTR-1 Filing: Exempt cattle feed sales are reported under Table 8.
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