ITC ON EXEMPT SUPPLY

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A petrol pump business selling only non-GST items (petrol, diesel) is seeking guidance on how to declare monthly GST expenses for rent, repairs, and stationery in their GSTR 3B. They are currently not claiming any Input Tax Credit (ITC) on these expenses and are confused about the correct reporting method, specifically whether to show eligible ITC and then reverse it. The advice given is that this method is incorrect and the expenses should not be shown in the 3B in this manner.

rajesh behl

rajesh behl (Querist)
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29 January 2020 We have a Petrol Pump business and sell Petrol & Diesel only, which are Non GST items. Every month we receive and pay bills for Rent, Repair, Stationery etc on which GST is charged. We don't claim any ITC on these bills. Now my question is, how should I show it GSTR 3B ? (Presently I do not show it in any return)

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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30 January 2020 you don't have to show it in 3B.

rajesh behl

rajesh behl (Querist)
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31 January 2020 Sir...but some one has told me that we should first show all ITC in "Eligible ITC" and then show them as reverse in "ITC reversed under rule 42".

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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31 January 2020 No that will not be correct treatment.

rajesh behl

rajesh behl (Querist)
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01 February 2020 Thank you ..sir...!!

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