Gst input credit

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If in one state we have different business verticals and has only one GST registrations, what will the definition of common credit. 

Each business verticals are decentralised with separate books of accounts. One business vertical say A have taxable Income. Business vertical say B have only non-taxable income. If common credit rule applies, credit available for A also has to be reversed on prorata bases based on exempted/ taxable turnover. Can we reverse credit of B alone without touching credit of A.

Whther application of Rule 42 can be applied business wise instead of registration wise.

Replies (3)

rule 42 will apply registration wise not business wise if there is one RC for all business vertical in a state. Common credit will be proportionate in all business vertical's exempted turnover and non exempted turnover.

Yes it is applicable registration wise... Eligible input is common credit *taxable turnover /total turnover
common credit reversal is registration wise. you can reverse the common credit ITC registration wise

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