Question 21 - If input tax credit is allowed only in respect of goods or services or both for effecting taxable supplies, would it not lead to loss of input tax credit on exempt supplies when exported?

Input tax credit eligibility: Zero-rated supplies treated as taxable, permitting credit even when supplies are exempt.

The framework treats zero-rated supplies as taxable supplies for input tax credit purposes, so inputs attributable to exported zero-rated supplies remain eligible for credit; the Integrated Goods and Services Tax Act defines zero-rated supply to include supplies that would otherwise be exempt.