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Pulkit Bohra (none)     12 March 2021

ITC utilisation across segments under common GST registration

A company ABC corp. is manufacturing  as well as is into trading of FMCG products. Both the business are being done under same GST registration number. 

can ABC corp utilise input availed under trading activities against liability for selling of manufactured goods ? 
is there any rule in GST which explicitly prohibits the ABC corp from doing so ? 

 5 Replies

CA Altamush Zafar

CA Altamush Zafar (GST Consultant)     13 March 2021

No there is no prohibition.
You can utilise ITC
Pulkit Bohra

Pulkit Bohra (none)     13 March 2021

Thanks for your reply.

Is there any specific section which governs the rules for what ITC can be utilized ?

Spurto Consultancy Services

Spurto Consultancy Services (Consultant)     13 March 2021

No there is no restriction. ITC can be used for any business under the same GSTIN. 

No there is no such restriction mentioned in the Act, Hence the utilisation is implied. 

CMA Poornima Madhava

CMA Poornima Madhava (CMA)     13 March 2021

Since GST is levied on both manufacture and trading activity (unless exempted etc), ITC cannot be restricted.

Bhavika Kothari

Bhavika Kothari (CA)     22 March 2021

No as per GST ABC corp can take Input tax credit (ITC) on all goods

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