INPUT TAX CREDIT

[Asked by Guest]

DEAR SIR

I WANT TO KNOW THAT I AM RUNNING PETROL PUMP AND I AM SELLING 2 NON GST ITEMS (PETROL AND DIESEL)AND ONE GST ITEM (LUBRICANTS). SO MY QUERY IS THAT CAN I AVAILED ITC ON OTHER EXP. BILL LIKE TELEPHONE EXP. , REPAIR AND MAINT. ETC. AND UTILZIED IN OUTPUT TAX ON LUBRICANTS SALE.

AI Summary

Input tax credit limited to proportionate taxable turnover; common expenses require segregation and recordkeeping to claim.
ITC on common expenses may be claimed only after classifying expenses at invoice level for taxable versus non-taxable supplies; where segregation is not possible, apply a proportionate apportionment using the ratio of taxable turnover to total turnover to determine eligible ITC. Absence of separate records makes full ITC claim impractical and risky.