credit reversal

[knr varma]

manufacturing company manufacturing taxable and exempted goods(exemple. PAPPAD) , company purchased capital goods( Truck for transporting goods Gst 28%+Cess), packing material ( Gst 18%).

above case company can claim gst input tax credit 100% on capital goods and packing material

AI Summary

Manufacturing Firm's GST Input Tax Credit Eligibility Debated: Full vs. Proportionate Credit on Capital Goods and Packing Materials. A manufacturing company producing both taxable and exempt goods inquired about claiming 100% GST input tax credit on capital goods and packing materials. Responses varied, with some advising that input tax credit is eligible for both items, while others emphasized that only proportionate credit is available due to the involvement of both taxable and exempt goods, referencing CGST Rules 42 and 43. Additionally, it was noted that registered GST entities must regularly file returns detailing sales, purchases, and tax activities. The consensus leaned towards proportionate credit eligibility.