Input Tax Credit - Reg

[KIRAN KUMAR]

Dear Sir,

Our company deal with Taxable and Exempted Supplies and taxable Service. Please go through the below table.

Kindly provide the Input tax credit rules with following table examples

Particulars	Turnover	CGST	SGST	IGST
Out Put Service( Leasing of Plant)	2060000	185400	185400
Out Put Sales	2754274.024	150080.9	150080.9
Out Put Sales	348000	0	0	62640
Taxable Servic & Sales	5162274.024	335480.9	335480.9	62640
Exempted Sales	283518356.9
Total Turnover	288680630.9

[Himansu Sekhar]

First identify the credit which are only relating to taxable supply and take full credit

Second identify the credit exclusively relating to exempted supply, do not take such credit

Third now identify the common credit . take the proportionate credit basing upon the value of the taxable supply and exempted supply.

[DR.MARIAPPAN GOVINDARAJAN]

What is your inward supplies. You can take credit only on the tax paid by your for your inward supply of goods or services or both. You only show the output service provided by you and output sales and not inward supplies.

[Nash Industries I Pvt Ltd]

From the table it appears almost 98% is exempted supplies ITC can be allowed only to the extent of 2%.

Would suggest to check the nature of supplies. Under GST, the ratio appears not normal.

[Chhatra Jain]

I agréé with Govindarajanji. Thèse data reflets your output tax. In order to know your ITC you provide your purchase data. Only then your balance tax can be calculated.

[Himansu Sekhar]

The output csupplies can determine the ratio of the turnovers.

AI Summary

Input tax credit allocation: apportion credits between taxable and exempt supplies proportionately based on taxable turnover ratio.
Input tax credit entitlement requires classifying credits as exclusively for taxable supplies (fully claimable), exclusively for exempt supplies (not claimable), or common credits to be apportioned between taxable and exempt outputs based on the relative value of taxable versus exempt supplies; computation depends on purchase/inward-supply data and verification of the nature of supplies.