Regarding Input under SAC 9966

[m Bhagat]

R/s,

I have question ?

Can a dealer setoff his GST amount (i.e SAC 9966 5% without input) with another HSN code .

Here dealer have supply of service as well as retails businees. He is not taken any input from supply service .

he taken input from retails business , which is purchase and resell it. can he adjust the Output GST tax of supply of service (i.e SAC 9966 Rent/Hire of Vehicle ) with input recieved from pucrhase of goods for resell.

thank you

AI Summary

Can a Dealer Set Off GST for SAC 9966 Services with Retail Inputs? Examining ITC Eligibility and Restrictions. A dealer inquired about setting off GST for services under SAC 9966 with inputs from retail business. Three responses were provided. The first response affirmed that Input Tax Credit (ITC) can be used for any taxable supply if GST is paid and utilized correctly. The second response argued that ITC is not eligible as trading and vehicle hire are distinct businesses without a direct business nexus. The third response agreed with the first, noting no restriction on eligible ITC utilization, but highlighted that SAC 9966, classified as rent-a-cab service, restricts ITC under Section 17(5)(b)(iii).