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INPUT TAX CREDIT

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Sumit Chaudhary

120 Points Posted on 16 December 2020

some one plz tell me,I work in a foods company and they supply their goods both 5% &18% then can be claim ITC on this type of supply?

Replies (6)

Quick Summary

This discussion clarifies whether a food company supplying goods at both 5% and 18% GST rates can claim Input Tax Credit (ITC). While Section 17(5)(b)(i) of the CGST Act 2017 generally blocks ITC on food, beverages, and outdoor catering, there are exceptions. If the company supplies the same product line under both tax rates, the credit might not be blocked. Further clarification on specific product names would help determine eligibility.

Ravi SADhiyan

Practice

4510 Points Posted on 16 December 2020

Originally posted by : Sumit Chaudhary
	some one plz tell me,I work in a foods company and they supply their goods both 5% &18% then can be claim ITC on this type of supply?

Kindly Elaborate 5 % and 18 % Goods

Sumit Chaudhary

120 Points Posted on 16 December 2020

There are lots of products some sale on 5% rate and some on 18%.

ayusmita

Tax consultant

5895 Points Posted on 16 December 2020

As per section 17. (5)(b)(I) of cgst act 2017 itc is not available for food or beverage and outdoor catering
so if you clearly say the product name then it will be easy to say