Input credit of reverse charge paid for Exempted Supply
This query is : Resolved
22 September 2020
Hi
Kindly guide can we claim an Itc for reverse charge paid specially when our main output/ supply exempted from tax.
Kindly guide can we claim an Itc for reverse charge paid specially when our main output/ supply exempted from tax.
23 September 2020
The input tax credit can be claimed by the buyer as long as they use the goods and services they bought on a reverse charge basis for business purposes only.
24 September 2020
Thanks for reply.Kindly guide further if we are paying GTA on reverse charge with 5% tax bracket then can we claim gst credit for same or not specially when our main supply exempted from tax.According to me we can take input credit of GTA in 12 % tax bracket only.Kindly guide
24 September 2020
GST rate 12% with GST and 5 % without GST is for GTA. The recipient can take credit even paid @ 5% subject to the condition that the service uses for business purposes only.
ITC is not available if outward supply is exempted or not used for business purpose
ITC is not available if outward supply is exempted or not used for business purpose
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24 September 2020
Thanks for the reply
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