Input tax credit under GST

[mukesh pareek]

Dear Experts,

We are manufacturing dutiable as well as exempted products and taking Cenvat credit on those input only who related to dutiable products.

My question is can we take Input tax credit under GST on those input also who related to our exempted products ?

if yes, then should we take this credit on 30th June before GST implementation or 1st July after GST implementation ?

Please mention specific rule if any related to this situation.

[Himansu Sekhar]

Transitional provisions of gst act deals such issue.

[Ganeshan Kalyani]

Even under GST you will not be able to take the credit of the inputs uses in manufacturing of exempted goods.

[Himansu Sekhar]

Please rerfer sec 140(4) of cgst act

[Himansu Sekhar]

The due date is the date predcedfing the date when the act is enacted.

[mukesh pareek]

Dear Ganeshan Kalyani sir,

Currently exempted product will be taxable under GST. please clarify considering this.

[Himansu Sekhar]

You can take the credit on inputs, inputs contained in semifinishedf goods and finished goods with certain conditions . please refer to above section. It has been clarified there.

[MUKUND THAKKAR]

In case, goods or services or both are partly used in taxable supplies and partly in non-taxable supplies, then amount of credit shall be restricted to the taxable supplies. Taxable supplies include zero rated supplies and exempt supplies shall include non-taxable supplies.

No credit is eligible if same is not reflected in your return. last return say June. please check your product is still covered under non-taxable supplies. than no meaning of doing such Exercise.

This is my personal view.

[Ganeshan Kalyani]

Sir, if the product which is exempt under the current tax regime turns out to be taxable under GST then the input tax credit paid under earlier tax regime would be available to dealer.

Input tax is CGST, SGST or IGST paid on input goods or services for making taxable supplies for goods or services ITC of all these levies is available to registered persons.

AI Summary

Input tax credit: available only for inputs used in taxable supplies; transitional provisions may preserve previously paid credits.
Input tax credit is available only for inputs and related goods/services used in making taxable supplies; credits must be apportioned where use is partly for exempt or non-taxable supplies. Transitional provisions allow eligible carry-forward or claim of pre-existing credits on GST implementation, subject to conditions and return-filing requirements.