TaxTMI 
TaxTMI 
Sirs, We purchase Urad Dall (HSN # 07139091) and paid IGST (ITC), The item being partly used for manufacturing exempt supplies and remaining for taxable supplies. How to adjust ITC against GST on outwards supplies in both exempted and taxable? Kindly suggest.
Determination of ITC - partly used for exempt supply and partly used for taxable supplies
01 Apr 2019 
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Input tax credit apportionment: proportionate ITC allowed for taxable use, remainder must be disallowed or reversed.
Where inputs are used partly for taxable supplies and partly for exempt supplies, only the proportionate ITC attributable to taxable supplies may be availed; the remainder must be disallowed or reversed. The apportionment follows the statutory blocking and apportionment framework under Section 17(2) of the CGST Act, using the ratio of taxable to total supplies to compute the eligible ITC share. (AI Summary)
Where inputs are used partly for taxable supplies and partly for exempt supplies, only the proportionate ITC attributable to taxable supplies may be availed; the remainder must be disallowed or reversed. The apportionment follows the statutory blocking and apportionment framework under Section 17(2) of the CGST Act, using the ratio of taxable to total supplies to compute the eligible ITC share. (AI Summary)