Input Credit

[Vinod Maheswari]

Respected Experts

Please answer following query for Input credit :-

1. if we applied for a tender and as a condition in tender we have to attached a BG for it. Now can i avail input credit of that BG. In case tender do not allot to us then whether we have to reverse Input credit or can utilised this credit for some other supply.

2. If in a month we don't have any outward supply so can we take credit of fixed expenses made in that month i.e security supply, maintenance work, Fixed manpower supply. whatever supply we made in a year are all taxable (whether its 1 month in year or more months, depended on market condition)

3. if i am manufacturing Taxable as well as exempted goods and purchase spares(do not capitalize it) for both and maintain separate stock register. i don't take credit of spare purchase for exempted supplied. If after 2 years i want to use spare of exempted unit in taxable unit can i take input credit and what will be the situation if transfer spare of taxable units to exempted units(have a single registration).

Please answer by giving section/rule reference.

Thanx

AI Summary

Input Credit Under GST: Claim Conditions for Tenders, Spare Parts, and Periods Without Outward Supply Explained A user inquired about the availability of input credit under GST for various scenarios, including tenders requiring bank guarantees, months without outward supply, and the use of spares for both taxable and exempt goods. An expert responded that input credit can generally be claimed for business-related input supplies, as long as there are no exempt supplies. For spares not capitalized, the opportunity to claim credit expires after two years unless they are capitalized, in which case credit could be claimed when used for taxable supplies according to specific rules.