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

[Ganeshan Kalyani]

Input Tax Credit on both the items i.e. packing material and truck is eligible.

[CSSANJAY MALHOTRA]

Proportionate credit is eligible. Please refer to Rule 42 & 43 of CGST Rules.

[KASTURI SETHI]

Yes. Sir. Beyond doubt. When taxable and exempted both are involved, not even remote possibility of full credit is present.

[Legal Raasta]

Every person registered under GST has to furnish the details of sales, purchases, and tax paid and collected thereon by filing GST return monthly/quarterly.

[YAGAY and SUN]

Proportionate ITC would only be available.

AI Summary

Input tax credit apportionment required where supplies are both taxable and exempt; proportionate credit and return reporting apply.
Where a manufacturer makes both taxable and exempt supplies, input tax credit on inputs and capital goods used for both types of supplies must be apportioned and reversed as required under Rule 42 and Rule 43 of the CGST Rules; proportionate ITC is available but not a full 100% claim, and registered persons must report sales, purchases and tax details in GST returns to effect compliance.