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ITC restriction

ITC / Input 494 views 4 replies
Taxable person doing business in both taxable supplies and exempt supplies.
whether he has to restrict ITC while filing 3B returns ?
Replies (4)
I understand there would be reversal of itc.
Yes .... ITC attributable to outward Exempted supply will not be available ,need to reverse the same (Refer Section 17(2) CGST ,Act)
Inouts/Input services/Capital Goods used exclusively for making exempt supplies ---- ITC Not at all available

Inouts/Input services/Capital Goods used exclusively for making taxable supplies ---- ITC available

Inouts/Input services/Capital Goods used for both making exempt as well as taxable supplies ---- ITC available but subject to apportionment as per Rule 42/43 (combined credit to the extent of exempt part is not available..)
As per CGST Act under section 17(3) ,ITC attributable to Outward Exempted supply will not be available so reverse the same.


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