Please guide me if GST Input Credit & refund will be available in following conditions:
Purchase item having HSN 7318 & GST rate 18%
Above item sold with HSN 8607 & GST rate 5% (since it is to be used as a Railway Part)
Suppose if no refund/credit is available then:
How will the cost of item will be calculated i.e whether by adding 18% or 13% to its cost ?
Dear Bhupender,
if there is no refund or credit available of excess (i.e. 18-13), you need to take 5 % as the cost.
If there is no credit available of 18%, you need to 18% in the cost while calculating cost of Final Product.
Please see the attached notification, Is this valid for GST ?
Yes, This is valid in your case. But the notification nowhere mention about set off with other FG. Then you can claim credit there. But if you have no other product then 5% is as good as Cost.
Dear Bhupinder
FG here means Finished Goods
Dear Shashikant,
Sorry for my questions, but Please tell me in conclusion, whether the ITC refund will be available to me or not ?
Dear Bhupinder,
You are unable to claim refund of Excess credit. You can set off with our
Dear Bhupinder,
You are unable to claim refund of Excess credit. You can set off with other FG you are amnufacturing.
If we can set off the tax liability, will it be credited to my input tax credit ledger & carried forward to next month's return period ?
/yes it can .
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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