ITC CLAIM ON SUBSEQUENTLY SALE IS EXEMPTED FROM GST

ITC on exempted sale is not available

Section 17(2) of CGST Act, 2017.. Where goods or services or both are used for effecting exempt supplies, the amount of credit shall not be available. If it is used partly for exempt and partly for taxable, then credit shall be restricted to so much of input tax as is attributable to the said taxable supplies including zero rated Supplies.

you can't take itc which are used in exempted supplies