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Itc for packing material

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AJEET KUMAR JHA

AJEET KUMAR JHA (Querist)
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16 November 2017 Sir,
Can we take ITC for Packing material purchased, used for sale of Exempted Goods (Pulses).

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 November 2017 As it relates to sale of exempt goods ITC can't be claimed.

Amitav

Amitav (Expert)
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16 November 2017 The simple principle that credit is allowed on inputs only if tax is charged on the output. When final supply is exempt, credit of GST paid on inputs would not be available.

On exempt goods anyway output tax is not paid so there is no reason to claim input tax credit for the same

So if you are selling such types of goods which are exempt from output tax. U can shift the input tax to your cost and charged from your customers.

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