One of the best parts of the GST is the Input tax credit (ITC) which has been incorporated in the country as a major change to the tax structure. The same would permit the businesses to diminish their tax load and save money to invest in the development of the businesses. As per the Central Board of Indirect Taxes and Customs (CBIC), the input tax credit would count as a process to prevent the cascading of taxes or tax on tax.
Prior to GST, the credit for taxes charged through the central government was not available as a set-off for tax payments imposed via the state governments, and vice versa. The tax paid at each level may be used as a set-off for the payment of tax at each succeeding stage under the GST, nevertheless, the tax levied by the central or state governments is a component of the same tax system
Input tax credit in GST, As defined by section 2 (57) of the MGL (Model GST Law) and section 2 (1) (d) of the IGST Act, Input tax is related to a taxable entity which means the (IGST and CGST) in respect of CGST Act and (IGST and SGST) in respect of SGST Act is levied on every supply of goods or any services on the entity which is used by it or which is intended to to be consumed in the course of the business and subsumes the tax payable under sub-section (3) of section 7. In a simple way, an input tax credit defines that an entity can reduce the taxes it paid on the inputs at the time of paying the taxes on output.
Latest Update on ITC Under GST
- The GST ITC reversal new advisory on reporting for opening balance is now live on the government portal. Read more, View more
- The Karnataka AAR has published the order for Attica Gold Private Limited. Rent, advertisement expenses, commission and professional expenses are eligible for GST ITC under the marginal scheme. Read Order
- “In sub-rule (4), in clause (b), after the words, ―the details of‖, the words, input tax credit in respect of‖ shall be inserted.”
- “A registered person, who has availed of input tax credit on any inward supply of goods or services or both, other than the supplies on which tax is payable on a reverse charge basis, but fails to pay to the supplier thereof, the amount towards the value of such supply along with the tax payable thereon, within the time limit specified in the second proviso to sub-section(2) of section 16, shall pay an amount equal to the input tax credit availed in respect of such supply along with interest payable thereon under section 50 while furnishing the return in FORM GSTR-3B for the tax period immediately following the period of one hundred and eighty days from the date of the issue of the invoice.”
- “Where the said registered person subsequently makes the payment of the amount towards the value of such supply along with tax payable thereon to the supplier thereof, he shall be entitled to re-avail the input tax credit referred to in sub-rule (1).”
- “In clause (c), for the words, letters and figure, ―and shall be furnished in FORM GSTR2‖, the words, letters and figure, ― and the balance amount of input tax credit shall be reversed in FORM GSTR-3B‖ shall be substituted.” Read More
47th GST Council Meeting Updates
- “Refund of accumulated ITC not to be allowed on flowing goods:”
- Edible oils
- Coal
- “Like CETPs, common bio-medical waste treatment facilities for treatment or disposal of biomedical waste shall be taxed at 12% so as to allow them ITC”
- “Room rent (excluding ICU) exceeding Rs 5000 per day per patient charged by a hospital shall be taxed to the extent of amount charged for the room at 5% without ITC.”
- “Due to ambiguity in GST rates on supply of ice-cream by ice-cream parlours, GST charged @ 5% without ITC on the same during the period 1.07.2017 to 5.10.2021 shall be regularized to avoid unnecessary litigation.”
- “Change in formula for calculation of refund under rule 89(5) to take into account utilization of ITC on account of inputs and input services for payment of output tax on inverted rated supplies in the same ratio in which ITC has been availed on inputs and input services during the said tax period. This would help those taxpayers who are availing ITC on input services also.”
- “Re-credit of the amount in electronic credit ledger to be provided in those cases where erroneous refund amount sanctioned to a taxpayer on account of accumulated ITC or on account of IGST paid on zero-rated supply of goods or services, in contravention of rule 96(10) of the CGST Rules, is deposited by him along with interest and penalty, wherever applicable. A new FORM GST PMT-03A is introduced for the same. 4. This will enable the taxpayers to get re-credit of the amount of erroneous refund, paid back by them, in their electronic credit ledger.”
- “Retrospective amendment in section 50(3) of CGST Act, with effect from 01.07.2017, to provide that interest will be payable on the wrongly availed ITC only when the same is utilized.”
- “Export of Electricity. This would facilitate the exporters of electricity in claiming refund of utilized ITC on zero-rated supplies.”
What Does GST’s ITC Mean?
A GST-registered individual or firm can effectively claim the tax they paid on their inward supplies, inputs, or raw materials as a credit when they are paying taxes on their outward supply or sales of commodities.
What is net Input tax credit (ITC)?
- Net ITC is the input tax credit which is availed by the taxpayer in his ITC ledger or for the month in which the taxpayer has sought. It is the amount of ITC taken by the taxpayer through table 4 of his GSTR 3B returns of the tax period refund is sought.
Now let’s see, how to calculate input tax credit, for example, if a tax payable on the output is INR 450 and the tax paid on the input was INR 300, then the entity can claim an Input tax credit of INR 300 and the remaining amount of INR 150 will be needed to deposit in taxes.
What Method is Used to Compute GST ITC?
For instance, you are an office builder and home furniture and purchase raw materials like wood for Rs 50,000 at a GST of 18%. Rs 9000 will be the tax filed. You sell the furniture that has been made for Rs 1 lakh and charge an 18% GST which amounts to Rs 18000 through your client. Rs 1.18 lakh is the revenue incurred through selling the furniture.
You are authorized to deduct the tax amount that stood at Rs 9000 which has been paid by you during purchasing the raw material. Therefore your total tax liability shall merely be Rs 9000 rather than Rs 18000. The total GST payable minus GST paid is the net GST paid on the raw materials that have been purchased.
How can Input Tax Credits be Claimed under GST?
For claiming an input tax credit, one must occupy a tax invoice or a debit note which is issued by a registered dealer.
The second thing, which must be kept in mind is that one should have received goods and services, and the taxed purchases have been deposited or paid to the government authority by the supplier in form of cash or by claiming the input tax credit.
For Claiming the GST ITC What Documents Would be Needed?
Invoice, debit note, and bill of supply from the supplier, the invoice issued identical to the bill of supply if the sum is less than Rs 200, bill of entry or other pertinent papers, and document from input service distributor are documents needed to file ITC.
Who Will be Qualified for the GST ITC?
Beyond registering with GST and filing taxes the businesses should secure the tax invoice or debit note from the supplier. As mentioned under section 41 of the GST Act, the input tax must be needed to get paid. The individual must be needed to file for the returns mentioned under section 39 of the GST Act, invoice payment should have been incurred within 180 days, GSTIN of supplier and recipient, and definition of goods and services. All the goods or services must be obtained by the individual.
No ITC on Warehouse Construction for Rent
Recently The Authority for Advance Ruling (AAR), Madhya Pradesh stated that the input tax credit will not be available on the goods and services taken and used on the construction of warehouses and the same are deployed for rent as per the Section 17(5)(d) of CGST Act, 2017.
Then, it must be ensured that the supplier has filed for the GST returns.
How to Avail the Input Tax Credit via Different Routes?
- For making payments to IGST: Take input tax credit from the SGST, CGST and IGST which is paid on the purchases.
- For making payments to CGST: Take input tax credit from the CGST and IGST which is paid on the purchases.
- For making payments to SGST: Take input tax credit from the SGST and IGST which is paid on the purchases.
Note: As per the current notification, the govt has modified some ITC set of rules under which the ITC for IGST is first used completely then the CGST & SGST will be used i.e.
- For making payments to IGST: Take input tax credit from the IGST and then CGST & SGST.
- For making payments to CGST: Take input tax credit from the IGST & CGST
- For making payments to SGST: Take input tax credit from the IGST and SGST.
Here is shown a GST Input Tax Credit Example Which Will Clarify in a Simple Manner:
Assume that there is a seller Mr A and he sold his goods to Mr B. Now here Mr B which is a buyer will be eligible to claim the input tax credit on purchases based on the invoices. So,
Step 1: Accordingly, Mr A will be uploading the details of all the tax invoices issued in GSTR 1.
Step 2. All the details in accordance with the sales to Mr B will auto-populate in GSTR 2A, and the same data will be taken when Mr B will file GSTR 2 (i.e details of inward supply). (Currently, the GSTR 2 is suspended and not available on the portal, therefore, Mr. B can avail credit in the GSTR- 3B)
How GSTR Forms Operate & How they Reconciled?
The GST Council has appointed 2 types of forms which are mandatory to be filled in every month, namely GSTR 1 for all the sales done and GSTR 2 for all the purchases done. (Currently, GSTR 2 forms are not available on the portal)
The GSTR 1 form will have to be filled on the 10th of every month includes all the details regarding the sales done by the business unit. There is also GSTR form 1A (Currently, GSTR 1A forms are not available on the portal) included which is majorly for the importance of reconciliation.
Basically, Details of outward supplies as added, corrected or deleted by the recipient in Form GSTR-2 (Currently, GSTR 2 forms are not available on the portal) will be made available to the supplier. The due date for the particular form is 20th of succeeding month.
Recommended: GST Forms: Return Filing, Registration, Rule, Refund, Challan, Invoice
Coming to the GSTR 2 form, it is for the details of inward supplies of taxable goods and/or services for claiming the input tax credit. Addition (Claims) or modifications in Form GSTR-2A should be submitted in Form GSTR-2.
On the basis of this, a form GSTR 2A is available which emerges with Auto-populated details of inward supplies made available to the recipient on the basis of Form GSTR-1 furnished by the supplier. The due date of this form is On 11th of the succeeding Month.
Post-GST era, the government allowed business entities to file their GST returns on a self-assessment basis in the starting two months. GSTR 3B is a return form for filing returns under the Goods and Services Tax Regime, TRAN I is the form in which business entities will be required to furnish all the information details of credit that they are claiming for the payment of taxes they had already paid before the implementation of the new tax regime.
According to Finance Minister Arun Jaitley, “Transitional forms (TRANS 1) for claiming input tax credit is now available at GSTN portal, under the Goods and Services Tax Regime.
A senior official of revenue department said, The transitional form is almost ready and we are working to upload it by 21st August so that businesses can start filing TRAN 1.” All normal taxpayers registered in the new tax regime are required to file July month returns by 25th August which was passed out.
What is the Method to File the Input Tax Credit?
- Log in to the GST portal http://www.gst.gov.in and tap on Services > Returns > ITC Forms
- In the GST ITC-01 box, tap on the ‘Prepare Online
- Choose your relevant section from the claim made under the drop-down list.
- Fill in the information for creating the invoice like GSTIN, Invoice number and date, and item details including goods type, description of inputs, unit quantity code, quantity, value, and amount of ITC claimed; and click on ‘Save’
- Tap on ‘Preview’ to preview the form’s draft and then tap on ‘Submit’
- Tap on ‘Proceed’ on the pop-up alert
- Prior to filing the submitted form you shall need to update your Chartered Accountant (CA)/Cost Accountant information and upload the CA/Cost Accountant certificate on the GST Portal for the ITC claimed exceeds Rs 2 lakh.
- Insert the information of CA like the name of the firm, CA’s name, membership number, and date of issuance of the certificate, and upload his certificate in JPEG format; and tap on ‘Save CA Details’
- For the declaration select the checkbox
- In the Authorised Signatory drop-down list, choose the authorized signatory. The same shall enable the two buttons – ‘File ITC with DSC or File ITC with EVC’
- For filing the form with Digital Signature Certificate choose the DSC button or the EVC button to file through the Electronic Verification Code.
- For filing through DSC tap on the proceed, choose the certificate, and tap on the sign.
- For filing through EVC insert OTP sent on the email and mobile number of the authorized signatory who is registered at the GST portal and tap to verify.
- Post filing the Acknowledgment reference number (ARN) would get generated and shared with the assessee.
ITC FAQs After GST Implementation for Traders & Consumers
Q.1 – Does the GST paid for motor vehicles used for office purpose is eligible for ITC?
ITC is eligible for all the goods and services which are used within the business operations and course of furtherance, However, there are cases in which the ITC on goods and services has been restricted. And going by the laws the ITC is only permittable when the motor vehicle is acquired for resale or for transportation of passengers/ goods or for imparting training. Only the aforementioned causes make eligible for the ITC else all the causes may be dismissed for the ITC.
Q.2 – Ready-made garments attracting 5% and polyester yarn at 18% GST. How much credit will be available?
Polyester Yarn will grant whole 18% tax credit.
Q.3 – Can a refund be claimed from the duty-free shop?
There is no provision for ITC in the exempt free shops.
Q.4 – A manufacturing company providing canteen services to the workers. WIll it provide input tax credit?
Section 17-5 of ITC does not provide input tax credit for such transactions
Q.5 – Will credit be available for the imported stocks available until 30 June?
If all the documents are there of the stocks, then the credit can be claimed.
Q.6 – A raw material trader can get ITC for the transportation of goods?
The tax paid on transportation services can be availed for Input tax credit.
Q.7 – How to avail ITC on old stocks of medicine?
If documents are complete than the ITC will be available but if in case, the documents are not there, then the product category with 18-28 percent will provide 60 percent CGST, while 5-12 percent tax items will give a CGST rate of 40 percent
Q.8 – Do business with manufacturing and distribution will have to register again for the input distribution?
Yes, there will be a separate registration for the ISD services.
Q.9 – Who will pay the GST of loading trucks GST which is capped at % percent?
Whoever claims the goods will be paying the GST, and if in case he is unregistered dealer he may have to pay the GST to the transporter and will have to submit the GST to the reverse charge mechanism.
Q.10 – If in case, the registrant takes one PAN for two registration with two different verticals. will be there any tax on the transactions in between?
Yes, the registration of both will be considered two separate entities so there will be a tax on the transaction on them. While there will be applicable for credit also.
Q.11 – What is the limitation for the registered dealer in transactions with the unregistered dealer?
A registered dealer can transact with the unregistered dealers with the maximum limit of INR 5000 per day with one or more dealers.
Q.12 – If a composition dealer purchases from an unregistered dealer, will it have to pay under RCM?
Yes, the reverse charge mechanism is applicable to the composition dealers also.
Q.13 – Will there be Cess input tax credit available?
The credit of cess will be available but it can only be used in paying the Cess
Q.14 – What if 75 percent of apartment building work was completed before the GST. Is GST still applicable at the paid amount to the builder?
The GST will be applicable on the amount paid after 1st July, still, the builder must reduce the further amount as the input credit benefits will be available to him
Q15 – Is there input tax credit available for the furniture and AC purchased for office purpose?
Yes, there will be input tax credit available for all the purchases made for the office purpose.
Q.16 – When there is HSN code mismatch but the tax rate is similar, so is there any effect on input tax credit?
No, there will be no difference in the input tax credit.
Q.17 – What if a hotel doing business under 10 lakh turnover, has contracts with online hotel booking portals which require GSTN number for further business?
Yes, the registration is necessary to deal with registered online portals as it will affect their input claims further. It is also necessary to file taxes and necessary return on time.
Q.18 What is the time limit for holding old stocks, and is there any GST applicable on it?
There is no time limit for keeping old stock but if input tax credit is to availed on that old stock than there is a time limit of six months
Q.19 What if trader operates in other states even when its turnover is less than 20 lakh limit?
The trader has to register under GST, as it is doing operations in other states also. He cannot opt for composition scheme either with all the invoice rules to be properly followed. But one can claim input credit if he pays input tax
Q.20 What is the case in bearing supply, as sometimes there is no issuance of invoice?
There is an issue regarding the B2B supplies, as the invoice is a must for it. While it is also important to the input tax credit claim which requires an invoice. The invoice must also contain GST number and CGST SGST details.
Q.21 Garments industry input is effected as INR 25 input gives only INR 15 output. Will there be any refund of remaining INR 10?
No, according to the GST act refund provisions, there is no refund on the input. But the credit can be used elsewhere in the transaction chain
Q.22 Do single state transportation of goods with turnover less than 20 lakh requires GST number to be given to the transporters?
No, there is no requirement of GST number.
Q.23 As a retailer with 50 lakh turnover, Which scheme must be taken under GST?
Composition scheme seems to be more feasible for a retailer as it has a very less compliance in front of the general scheme. In a composition scheme where a retailer has to file 1 return in 3 months, the general scheme has 3 tax returns in one month. Also, there is no need to give invoice details, but in the composition scheme you cannot charge taxes and cannot take input credit.
Q.24 What is the final date to apply for composition scheme?
The government has extended the application of composition scheme till 16th of August.
Q.25 Can a dealer opt for a composition scheme if he has old stock of inter state purchase?
No, a dealer cannot ask for composition scheme if he has an interstate purchased stock.
Q.26 How to obtain input tax credit in GST if GSTN number is not mentioned on the invoice?
There must be GSTN number mandatory on all invoices regardless of mistakes.
Q.27 Is there any provision to claim input tax credit and depreciation, if the office furniture and machine are purchased?
One can claim input tax credit but cannot claim depreciation.
Q.28 In an imitation jewellery business, is there a concept of claiming input tax credit?
Yes, one can take input tax credit after paying all the due taxes.
Q.29 Is there input tax credit available on the office stationery purchase?
Yes, there is a provision of input tax credit on all the purchases of office stationery.
Q.30 When a product is purchased on the basis of RCM and the due tax is duly deposited on 10th of August, so when will input credit be claimed?
It can be claimed in July Returns But the returns to be filed before 20th of August.
Q.31 What is the GST on cars?
GST of 28% is levied on the cars while it also depends on Engine capacity and length of the cars. Less than 4 meters and engine capacity of 1200 cc is levied with 1% cess and an engine capacity of 1500 cc is having a 3% cess. While SUV and luxury cars will be applicable with 15% cess totalling 28% GST + 15% cess./p>
I have registred under GST. I have a call center and I Export Services to USA, I have taken LUT and export of service is excempted to add GST to my client. Now I have purchesed Laptops and computers for the porpuse of business which are Capital goods. Can I claim ITC ? If yes how can I claim ITC if I do not collect GST to any services exported
Sir.,
Can we cancel the Invoices which was wrongly uploaded in GSTR1 in March2021 and can we get a GST refund?
Please reply
Thanks and regards
K.Rengarajan
Yes, you can do an amendment and excess cash tax paid can be used to pay off your further tax liabilities
01.08.2021
Sir.,
Can we take ITC on March2021 vendorbill in July2021 month since the bill was provided to us only in july2021 an also provision of expenses was also not created in March2021 in our ledger.At the same time March2021 GST bill was already uploaded by vendor in March2021 month itself.
Please help and reply
Thanks and regards
K.Rengarajan
Dear Sir, As per GSTR 9 Table 8A the cut-off date for claiming ITC for FY 2020-21 is 15/07/2021
26.07.2021
Sir.,
Can we take GST input credit related to Telephone purchased FOR OFFICE USE from AMAZON
Please reply
Thanks and regards
K.Rengarajan
Yes
Sir, The exemption of GST on export sea freight SAC code-996521 was till 30/09/2021 vide notification no.No 4/2020-Central Tax (Rate) dated September 30, 2020. Kindly inform if there is any extension of the exemption period or GST is now applicable from 1st October 2021. If yes, please confirm if the rate is 5% or 18%.
Best regards,
BSKumar
Please contact to GST practitioner
A party Order – 100000 + 18000= 118000.00 paid to Mr B Party
Mr.B party collect and GST amount paid the GSTN account 18000.00
Mr.C party Get the Order From Mr B party 50000+9000= 59000.00 .
Mr C also GSTN filled – accounted
Mr B party will get benfit 9000.00
Yes
Mr. A party give the Service order along with GST . to Mr B party . Mr B party will collect service payment + Gst amount . Mr.B part GST filed . At the Same Order Mr B part give to Mr C party . Mr.C party completed the work and Collect the Service order payment + GST amount . and also Mr C party – GST filed ( Mr.C party Get the Order from Mr.B ) .So this Mr.C party paid That GST amount will return benefit to Mr B party . Please Advice
Yes
If goods purchased with different HSN Codes are supplied with different single HSN codes. Can I get the input credit
Yes
What type of furniture allowed and is there any limit to avail ITC?
“ITC will be available for GST paid on composite supply of goods (furniture 86 fixtures) and services (manpower supply) in accordance with Section 16 of CGST/RGST Act, 2017”
We had issued an GST Tax Invoice to our Client in July 2019, have paid the GST for this Invoice and already this invoice is reflecting in GSTR-1. But client is saying that they can’t view this invoice and claims that this Invoice is not GSTR-1 compliance. We shared the sceenshot of our GST Portal where this Invoice is reflecting on GSTR-1 B2B – but Client is still not accepting it and hasnt paid us yet. What should we do to prove our claim ?
Kindly check GSTR -2A for the reference.
I purchased goods worth Rs.1000+180(18%gst)=1180(my input value) and transportation charges Rs.100+18(18%gst)=118. so my purchase price becomes 1180+118=1298.
and I sell the product at Rs.1400+252(18%gst)=1652
so total GST to be paid in GST-2A by me is
1400-1000=400
or 1400-1100=300 on this value.
1400-1100 = 300 on this value
21.05.2020
Sir.,
Our company is engaged in MAGAZINE Subscription and is fully exempted from GST
Please clarify my following doubts
1. We have received advance subscription of Rs.1200/- plus Rs.400/-as Postal charges (Total Rs.1600)for 12 monthly issues from one client in Punjab on 01.01.2020 in order to send the magazine every month thro.Registerd post to that client and postal charges Is fully received in advance from the client and it is not company expense and we have not included in oru company income.
We recorded our client subscription period from Jan2020 to dec2020 for 1 year
Journal entry was passed as below for the above advance received with postal charges
i. Bank account Dr. Rs.1600/-
ii. Advance subscription Cr. Rs.1600/-
(Being Subscription advance received with postal charges from Punjab client)
———————————————————————————————-
2. We generated Bill of supply without GST on 01.01.2020 as below
i.No.of magazine sent-for January2020 issue(1copy) Rs.100/-(Rs.1200/12months)
ii. Add: Registered postal charges Rs.36/-
iii.Grand total Rs.136/-(Rs.100+Rs.36)
—————————————————————————————————
3. JV Entries were passed for above Bill of supply as below on 01.01.2020
i.Advance subscription Dr. Rs.136/-
ii.Subscription Income Cr. Rs.100/-
iii.Postal charges Cr. Rs.36/-
(Being Magazine income for January2020 accounted)
—————————————————————————————
4. We sent the January2020 issue on 10.01.2020 thro.regsisterd post and passed JV as below:
i.Postal charges Dr.Rs.36/-
ii.Cash Cr.Rs.36/-
—————————————————————————————————————–
5. Can we account postal charges separately under postal charges account and GST also not charged on postal charges since it is reimbursement and already paid as an advance in the year beginning itself by the client and we have not included it in our income?
Please help
Thanks and regards
K.Rengarajan
Please contact to GST practitioner
We are providing Engineering services to Govt. and Pvt. Clients. We raised an invoice in March and GSTR1 filed. GSTR3B not yet files, as the same client and other Clients have not released our payment including GST. A particular client is not releasing our payment taking a plea that we have not filed GSTR3B, though we have filed GSTR1. Please advise me, what to do.
Please contact GST practitioner
I have a unit established in SEZ involved in the export of goods covered under chapters 62 and 63. I had un claimed credit of VAT which is transmitted under GST using Tran 1. Can I now claim a refund of the said credit amount lying as GST credit?
Please check whether it is available through RFD-01 form, if yes then only you can claim refund
Can we apply for ITC on purchases made under bought note ie unregistered purchases
Sir, I am paid GSTR 3b month of Dec 2017 but gstr1 field dec17 so some invoice output bill missing how to ratification return and annual return Help
There is no option provided to rectify the GST returns. However you show the amended details in the next GSTR-1 to be filed in the respected amendment columns.
Hi, I am a Tour Operator based in New Delhi. Can I avail ITC from my suppliers who are registered under GST but are from other states of the country example Tamil Nadu, Kerala, Rajasthan etc?
Yes, you can claim the ITC.
WE APPLIED FOR REFUND OF GST DUE TO EXPORT.
DEPARTMENT ALLOWED SOME REFUND AND FOR THE BALANCE AMOUNT THEY ISSUED GST-PMT-03 FOR RECREDIT OF THE GST.
OUR QUESTION IS HOW AND UNDER WHICH COLUMN WE SHOULD TAKE CREDIT OF THE SAME IN OUR CREDIT LEDGER/3B
The amount of refund rejected shall not be taken as re-credit in credit ledger/3B. As per Rule 86(4) of CGST Rules, 2017, if the refund so filed is rejected, either fully or partly, the amount rejected shall be re-credited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03. Therefore, such amount shall be re*credited by proper officer itself in your electronic credit ledger.
Date; 08/06/2018
An unregistered doctor has purchased Dental Operating/testing chair, which is Capital goods for him, paying GST in purchase invoice. Can doctor avail ITC on the purchase of Capital goods?
Unregistered persons cannot claim I.T.C. as they do not have any output tax liability.
Sir, I’m an involved in LPG goods transportation business and I have registered under GST as the sole proprietor. if I Purchase Brand new vehicles for expansion of my existing business whether I can claim ITC as goods transport agency.
As you will use these vehicles for transportation of goods, you can avail the ITC for the same.
Sir,
We are mfg. co. for our staff we are buying Tea coffee powder(Godrej Make Ready). The supplier is giving bill in the company name can we take credit of SGST/CGST?
As ITC for foods and beverages is not allowed under GST, you can’t claim ITC for the same.
Can I avail ITC for purchase Tea & Coffee Premix in the Office?
Yes, you can take ITC for the bussiness expenses.
Please tell me where can I read the logic taken by the lawmaker for making every rule and section of GST law.
Model GST law is available on the GST portal.
Please tell me how to calculate input tax credit under GST?
Hi, we have a retail garment store in Mumbai, there are few customer asking to put there GST no in our system to avail GST credit, The bills which we are printing in there name, but there is no provision to print their GST no on these invoice as this is a sale to retail customer, Can they claim this GST and how?, what we need to do to ensure the GST credit to there account?, (These purchases are only for there self-use and not for the official use, can they claim this, is there any list for any non-claimable articles, kindly share)
GSTIN needs to be mentioned in the invoice issued by the supplier to claim input tax credit.
I have bought a New BMW car on 09-09-2017, we received a bill with cess @15% can we get Input credit on it? and 2nd sep New amendment has announced cess on luxury cars 25%, which rate is applicable? Note: this car bought for Company use.
As per Sec 16 (5) no credit will be available for motor vehicles and other conveyances except when
they are used––
(i) for making the following taxable supplies, namely:—
(A) the further supply of such vehicles or conveyances; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles or conveyances;
(ii) for transportation of goods.
WE ARE REGISTERED UNDER GST AND FEW POSTPAID MOBILE NOS ARE REGISTERED IN STAFFS PERSONAL NAMES AND WE USED TO REIMBURSE/PAY TO SERVICE PROVIDER THE BILL AMOUNT AS PER BILL PROVIDED BY STAFFS. NOW THE MATTER IS THAT THE SERVICE PROVIDER(MOBILE CO.) IS REGISTERED BUT THE BILL IS THE NAME OF OUR STAFF AND OUR CO. GSTN IS NOT MENTIONED ON THAT BILL. WHAT WILL BE THE ENTRY IN TALLY GST AND GSRT-2 EFFECT.
As the mobile bills are prepared in the name of staff, the company cannot claim ITC on such expenses.
For air-conditioner in office, can we claim full input credit one time.
You can avail credit for the same in one time.
Sir, we incur many expenses on which we pay GST and also have bills with GSTIN of suppliers but our GSTIN is not mentioned on the bills. Will we get input credit for the said expenses when we report the same in our GSTR 2 ? How will it be reconciled by GSTN?
I have registered my taxi with Ola cabs. Whether GST is applicable to me and how to calculate it.
GST is applied on you on Reverse charge basis, Ola cabs will be liable to pay GST to Govt. GST applies on the amount of portion of fare paid by ola to taxi drivers.
Can we claim input tax on telephone bill, vendor issue a bill on our company name, please explain
Yes
In vat, Purchase Goods under cst against Form which attract CST@2% and it will be reversed when it sold in state.and paid state vat . having stock on 30.06.17 Rs150000/- can claim itc in Tran-1
A Murugesan
Please clarify as to why credit will be reversed if sold within the state of goods purchased from outside the state.
very useful guidance
Thanking You.
I also a question on ITC. I am regd GST Trader. I have a stock Value of Rs.150000/-purchased against C Form @2% (and reversed the 2% cst and paid vat @5% in old regime) GST Rate for Stock @12% can i take ITC for the stock held on 30.06.2016 valued Rs.150000/- in Tran-1 under CGST.
A.Murugesan
Credit can be taken under the transitional provisions only if the credit is allowed under the old regime. If credit is not allowed as per the old regime then credit under gst cannot be taken.
Sir, I also want to know that I am working in a manufacturing Company and what type of Purchases where I can not take credit on GST please advice with example thanks.
what is the GST rates for works contracts (building construction contract) and ITC.
Read here: http://blog.saginfotech.com/gst-impact-on-works-contract
HI WE ARE IN QUARRY MATERIAL SUPPLY BUSINESS, TRADERS, PROPRIETORSHIP, IF I WILL PURCHASE NEW DUMPER FOR SUPPLY OF MATERIAL THAN ITC POSSIBLE ?
THNX.
ITC AVAILABLE FOR DUMPER TYRES, SPAIR PARTS ?
a) ITC is not available for motor vehicles and conveyances except when:
conveyances
As per yr reply ITC available, if I will buy new dumper for materials transportation.
Thnx
If you are providing services of transportation, then you are eligible for ITC subject to other conditions related to ITC.
I am registered under GST for Renting out commercial building. Will input tax credit be available for municipal taxes paid to the Local authority.
can we avail ITC of 12% cess againt cgst or sgst ig there is not output cess?
I am a manufacturer entity (registered under GST Act) And I purchase goods from Registered Dealer. I pay Transporting to the transporter (unregistered) for my purchase then I pay taxes @ 5% under RCM on transporting amount paid by me. Can I avail ITC of the amount paid by me under RCM?
Example:- I pay Rs 5000 to transporter for transporting the goods and Rs 250 is paid by me under RCM (as transporter is unregistered) then can I Avail Rs 250 as my ITC?
In case of GTA service, no input is available.
Dear sir, we have rcm liability and we have some local input can we set off the same.
No, ITC cannot be used to discharge liability under RCM.
If am paying the tax due under RCM on 20th Aug, can i claim the input credit of the same in Jul GSTR3B?? Also as of now can i claim the Transitional Input claim in GSTR3B???
no, input cannot be claimed for tax paid on 20th Aug while filing return for the period of July.
“Can a dealer opt for a composition scheme if he has old stock of inter state purchase? No, a dealer cannot ask for composition scheme if he has an interstate purchased stock” I want to ask, If a person having interstate purchase stock but not claiming refund/ tax credit then
Can he opt for composition scheme
since interstate transactions are not allowed under composition scheme, therefore dealers having interstate stock are not allowed to opt for composition.
We are retailer of readymade garment which scheme should we opt for
There is no refund of ITC on Readymade garment below INR 1000 being taxed at 5% and above INR 1000 being taxed at 12% GST
Sir,
No ITC available when you buy from a Composition Dealer!
how to find whether he is composition dealer or other?
can we take ITC claim for towards purchase of steel,tiles,work contracts and some other materials…ect with gst invoice for Renovation of office?
is there any specific rules for manufactures regarding ITC Claims ? if any please share
we are manufacturer, importing machinery spares & parts..ect. we are paying duty/IGST Through ICEGATE portal. is applicable for entire duty Input tax credit or only IGST Amount? any specific procedure for that to claim Input tax credit?
DEAR SIR,
IN MY MANUFACTURE COMPANY WE HAVE VEHICLES CAN WE CLAIM INPUT TAX CREDIT ON PURCHASE OF VEHICLE TYRES.
yes you can claim input on purchase of vehicle tyres.
Sir,
We are a yarn spinning mill – manufacturing unit.
We bought one lorry to carry our goods and one Toyota car by paying Cess and GST
Please confirm input credit of Cess and GST available for the above purchase
Thanks
Dear Sir,
Input cess @ 12% credit available or not against output cess @ 12%
Yes input is available.
hi sir
what is the GST input Credit ???
How to monthly GST tax calculated??
Read the article carefully
Sir,
I am register dealer & if I purchase machine for manufacturing purpose can I take ITC of Machine?
Machine is capital item on which depreciation is availed.
Yes you can availed ITC.
when a taxpayer exports goods and services and the tax payer is not registered under gst what will be the implications to be faced by taxpayer
Dear Sir
I have goods purchased from inter states (igst)
&Sales (sgst) to local .I asking to you
Can I claim to input tax credt?
If you are registered entity other than composition than you can claim input credit.
If there is any exemption in issuing sale bill up to a particular amount under gst rule.i mean for sale of RS 100 every bill is necessary or bulk sale bill can be issued at the end of day.sir quote rule.
Upto Rs.200/- bill is not compulsory.
hi
I am a ready made retailer,
assume i have purchased ready made jeans from a registered dealer worth Rs.800+5%tax under GST = Rs 840
and now i have to sell it for 25% margin adding 840+25%margin = Rs 1050/-(inclusive of taxes) and i give 10%discount on MRP i.e.., 1050-10%= Rs 945/-
so should i bill it for 12% or 5%?
Now what is my input and output
how much i can claim ?
Tax is payable on sale value. Not on MRP.
whether input tax paid on purchase can be adjusted with output liability of service sector under gst…???
yes , such set off is allowed under gst
Can we take input credit on computers purchased for office purpose.
yes, under GST credit is allowed
Dear sir, Can GST credit be taken for tea-coffee premix consumables purchased for use in the office. If yes, under what head do we take the expense.
CAN I AVAIL INPUT CREDIT FOR PAYMENT TOWARDS GENERATOR CHARGES AND ELECTRICITY CHARGES?
Credit will be allowed for all business expenses except some under GST.
Sir I have a small business turnover 12,00,000 p.a. civil subcontract my vendor is asked GST no. I registered under GST I need to file monthly return or not. If yes what rate I have to charge. He said you will get input credit. Please help d
Yes, if you registered under GST than you have to fill return.
My company is registered under GST, our employees submit their mobile bill monthly as reimbursement.
We used to take Input service tax from their postpaid bills ( Registered on their individual names ) but now after this GST, how does it work…, can we follow the same.
YES, UNDER GST INPUT CREDIT IS ALLOWED FOR ALL BUSINESS EXPENSES EXCEPT SOME.
sir say i purchased 200000 stocks from a registered dealer(20000 is the paid gstin)(180000 is the landing ). I am also a registered firm. my margin is 5%. i sold one lack each to two firms ,one is registered and another one is unregistered. what is the tax credit i will get in this case.shetty0105@gmail.com
In case of purchases from unregistered dealer , reverse charge mechanism applies, i.e the liability to pay tax shifts on the recipient of goods.
Hi
How much is IGST on imports of readymade garments and footwear etc.
How much is available for credit?
IGST on readymade garments is: If sale value does not exceed Rs. 1000 then 5% else 12%.
IGST on footwear is: If sale value does not exceed Rs. 500 then 5% else 18%
Full amount is available for credit.
what is the gst rate of gold and silver diamond jewellery please tell me
GST rate is 3% on gold, silver and diamond (other than rough diamond) and 0.25% on rough diamond.
Can i get Gst input on annual lease rent paid on commercial office space noida, as I am registered in Delhi.
Yes, but only if it is used for the furtherance of business
Can we take GST input tax credit of telephone bills of postpaid connection, bill in the name of Company
Yes you can take input tax credit of telephone bills of postpaid connection in name of company.
textiles A.
mill yarn+tax+transport .< Rs100/kg
B] 100+20 profit+tax?+transport <________?
C} B total+weaving +sizing+process+transport<_________?
D}B totalfabric cost+50 profit+5% tax =40Lakhs turn over
20 Lakh itc claim @ claim whom ,profit or turn over eligible
for D, require flow chart
ok,please notify me the rate of polythene under gst.
GST rate on polythene is 18%