ITC on exempted supply

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When a company manufactures goods that are exempt from GST, the Input Tax Credit (ITC) on purchases and services used in their production cannot be claimed. Instead, this ITC should be charged directly to the Profit and Loss account as an expense. This is the standard accounting treatment for such scenarios.

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(Querist)
26 May 2021 If a company is manufacturing goods which are exempted from payment of GST, then what would be the accounting treatment of ITC on purchases and services received for manufacturing such exempted goods.

Thanks in Advance
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
26 May 2021 Charge it to p and l as expenses.
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CA AMIT JAKHWAL

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CA AMIT JAKHWAL (Expert)
27 May 2021 Support the view of Seetharaman ji.
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