Nil rated goods input taken or not?

This query is : Resolved

mahesh (Querist)
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31 August 2021 Sir we are manufacturer and we produce the shovel which is nil rated and other automobile parts which is taxable. But when we purchase the raw material in that time gst has included in invoice and that material is used in both product nil rated and gst rated.
So, my query is can I take input gst or not in nil rated product which raw material is used for making shovel.
Please clarify sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 August 2021 You can't take input GST on nil rated products.

CA Pradeep Sharma

CA Pradeep Sharma (Expert)
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31 August 2021 You can not take input on nil rated products (specially when inputs directly related to nir rated products)............ If you are manufacturing both taxable and exempted goods then you should maintain separate books of accounts..........and try to take maximum inputs on taxable supplies

CA Kushwanth AVSR

CA Kushwanth AVSR (Expert)
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31 August 2021 It is a query based on common input. In case of common input, you have to apportion the input tax credit to both nil rated and taxable supply based on the current month outward supplies.
Read rule 42 of the CGST. There certain steps were specified on how to do the aforesaid calculation.

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