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ITC restriction

venkateswara reddy gudemupati (33 Points)

02 November 2019

Taxable person doing business in both taxable supplies and exempt supplies.
whether he has to restrict ITC while filing 3B returns ?

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4 Replies

Surjeet Negi (947 Points)
Replied 02 November 2019

I understand there would be reversal of itc.

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Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 03 November 2019

Yes .... ITC attributable to outward Exempted supply will not be available ,need to reverse the same (Refer Section 17(2) CGST ,Act)

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Hardik (Professional) (918 Points)
Replied 03 November 2019

Inouts/Input services/Capital Goods used exclusively for making exempt supplies ---- ITC Not at all available

Inouts/Input services/Capital Goods used exclusively for making taxable supplies ---- ITC available

Inouts/Input services/Capital Goods used for both making exempt as well as taxable supplies ---- ITC available but subject to apportionment as per Rule 42/43 (combined credit to the extent of exempt part is not available..)