15 November 2021
I am a manufacture of biscuits. during the FY 2018-19 I sold biscuits and paid GST as per the applicable rates. and also I sold some Maida which is exempt. now do I need to reverse ITC on other purchases like Wrapper, Sugar, Vanaspathi, etc., in accordance with Rule 42? because while purchasing maida I didn't receive ITC, because it is exempt.
15 November 2021
iFor Input goods and services: Rule 42 of the CGST Rules 2017 prescribe the ITC reversal on the supplies that are exempt or used for personal consumption. As per Rule 42, reversal is required for that portion of common credit which is attributable to exempt supplies or for non-business use and so u can reverse it under ineligible
CAclubindia
