Question 9 - Where goods and/or services received by a taxable person are used for the purpose of business and non-business supplies, whether the input tax credit is available to the registered taxable person?
FAQ on GST dated 21.9.2016 based on Draft Model GST Chapter 10 Input Tax Credit
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Input tax credit limited to business-use supplies; proportionate allocation and prescribed rules govern credit for capital goods. Input tax credit may be claimed only for the portion of goods or services attributable to business supplies; eligible credit must be calculated in the manner prescribed under the statute and implementing ITC rules. Credit on capital goods is permitted only on a proportionate basis reflecting business use.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input tax credit limited to business-use supplies; proportionate allocation and prescribed rules govern credit for capital goods.
Input tax credit may be claimed only for the portion of goods or services attributable to business supplies; eligible credit must be calculated in the manner prescribed under the statute and implementing ITC rules. Credit on capital goods is permitted only on a proportionate basis reflecting business use.
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