Please explain that if a normal tax payer is having both taxable and exempt supplies (exports)and claimed ITC on IGST particularly from Transport services. Is the taxpayer has to restrict the ITC on such IGST claim or not, along with rule in this regard.
Sudhir Kulshreshtha
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ITC Claim .
Replies (6)
Quick Summary
Yes, The Tax payer can claim ITC for the transport.
But,
I can't get you as Exempt Supplies...
Bcoz,
Is there You supplied Exempt goods or You told export as Exempt...??
But,
I can't get you as Exempt Supplies...
Bcoz,
Is there You supplied Exempt goods or You told export as Exempt...??
Yes,export as exempt. ........
Refer sec 17(5) for blocked credit, nature of transport services not mentioned.
@ Sudhir,
Okay...
You can claim ITC...
Okay...
You can claim ITC...
ITC with taxable and exempt (export) supplies:
• Exports are zero-rated, not exempt. ITC used for exports is fully available (Sec 16 IGST). No Rule 42 reversal for zero-rated supplies.
• For genuinely exempt supplies (e.g. exempt goods or services), apportion common ITC under Rule 42 (common credit × exempt turnover ÷ total turnover).
• Exports under LUT: claim a refund of ITC.
Mr. Aashok Kumar Sharma,
The query resolved at the time posted.
Almost it's three years ago...
I received almost 300 mails From 07/11/2026 midnight to 08/11/2026 which is attending by Aashok Kumar Sharma. He is attended and replied for the past three years queries...
Admin please block this ID...
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