ITC on Exempted item

[Subhas Prasad]

Dear Sir

Good Evening

I want to know that if any one dealing with Exempted item means the final product is exempted in GST but the some of consumable item are taxable then he should claim her ITC or not

AI Summary

Input tax credit restriction: ITC cannot be claimed on inputs used in making an exempt final product, making such tax unrecoverable.
Input tax credit is not available where the outward supply is exempt; consumables that are part of an exempt final product break the ITC chain, making tax paid on those consumables non-recoverable and a cost to the supplier rather than a recoverable credit.