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

Input tax credit: eligibility and utilisation depend on business nexus and blocked-credit rules for rent-a-cab services.
The query asks if ITC from retail/trading purchases can be set off against output tax on SAC 9966 vehicle-hire services. One advisory view treats ITC as a substantive right usable for any taxable outward supply if eligible. Another stresses that ITC must be used in the course or furtherance of the same business-trading inputs do not support vehicle-hire services-so ITC would be ineligible. A further reply notes SAC 9966 may be subject to blocked-credit rules for rent-a-cab services and that establishing nexus would be difficult, also precluding ITC.