Pulkit Bohra (none) (47 Points)
12 March 2021A 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 ?
CA Altamush Zafar
(GST Consultant)
(15907 Points)
Replied 13 March 2021
Pulkit Bohra
(none)
(47 Points)
Replied 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
(Consultant)
(1891 Points)
Replied 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)
(13097 Points)
Replied 13 March 2021
Since GST is levied on both manufacture and trading activity (unless exempted etc), ITC cannot be restricted.
Bhavika Kothari
(CA)
(1258 Points)
Replied 22 March 2021
No as per GST ABC corp can take Input tax credit (ITC) on all goods
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