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ITC in case of Taxable as well Non taxable business

This query is : Resolved 

Dear Experts
Entity is operating into logistic services and thereby RCM provisions are applicable. It is not taking ITC benefit and also Common credit is taken into proportionate basis in case of any related sale of taxable service.
Now Company wants to add a business activity and enter into Trading of Gloves and Masks. It is being a completely diverse business from existing one, is it allowed to collect GST from customer for trading business and can take benifit of ITC on purchase of gloves and mask ? can we establish one to one co-relation of input output services here ? it shall not be consider as common credit for company. please give your openion


Yes, you can avail full credit of inward supply relating to taxable supplies of trading business.See rule 42.

IF IT IS A COMPANY, THEN FIRST THE COMPANY NEEDS TO MAKE CHANGES IN THE OBJECT CLAUSE OTHERWISE THE CONTRACT IS ULTRA VIRES


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