TaxTMI 
TaxTMI 
we have composite unit of cotton gining & oil mill unit ,we purchase raw cotton & pay gst on rcm basis & take itc on gst paid as Rcm,In gining unit two product emerge one is cotton bales & cotton seed, both are taxable but if we further process cotton seed ,2 products emerge one is cotton seed cake which is exempt & 2nd is cotton oil which is taxable ,so we need to reverse credit on cotton seed cake ,as per the turnover of cotton seed cake but how in gst 3b???
itc reversal
02 Jul 2019 
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Input Tax Credit reversal: apportion ITC for exempt product by turnover or consumption; claim full then reverse in return.
ITC attributable to exempt seed cake produced by a composite ginning and oil mill must be apportioned and reversed; if consumption records are absent, apportionment is by exempt product turnover proportion, while recorded specific consumption allows reversal on actual consumption. In practice full ITC is claimed in GSTR 3B and the ineligible portion reversed subsequently; cost accounting or prior period turnover ratios are practical bases for allocation. (AI Summary)
ITC attributable to exempt seed cake produced by a composite ginning and oil mill must be apportioned and reversed; if consumption records are absent, apportionment is by exempt product turnover proportion, while recorded specific consumption allows reversal on actual consumption. In practice full ITC is claimed in GSTR 3B and the ineligible portion reversed subsequently; cost accounting or prior period turnover ratios are practical bases for allocation. (AI Summary)