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40% and 60% formula

inder (Accountant) (35 Points)

26 June 2017

in case of no excise invoice is available thn 40% and 60% portion is allowed as credit depends upon rate of tax....please do clarify me tht how can we calculatr 40 and 60 percent in case of absence of excise amt.

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Purnima (Professional) (289 Points)
Replied 26 June 2017

One can claim ITC if he/she is in possesion of duty eligible document.In absence of such document Ad-hoc credit shall be available to traders as follow:

%age of Ad-hoc credit	Rate of GST
40 % of CGST	Less than 18%
60% of CGST	Equal to or more than 18%
20% of IGST	Less than 18%
30% of IGST	Equal to or more than 18%

Example:

Particulars	Amount
Base Price	500
Add: CGST at 6 %	30
Add: SGST at 6%	30
Total Commercial Value	560
Less:Discount Eligible Credit at 40% of CGST i.e., Rs.30	12
Selling Price	548