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40% and 60% formula
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.
Replies (2)
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 |
Hope this helps!
Thank you very much
CAclubindia
