Two business in one GST number

[KARAN VERMA]

If I have one business paper mill and other business is Production of film.

Whether I am eligible to utilise ITC availed on raw material used in manufacturing paper in outward liability of films.

[KASTURI SETHI]

One-to-one correlation is not requirement under CGST Acts/Rules. ITC can be utilised if you fulfill the condition of "being used or intended to be used in the course or furtherance of his business" as per Section 16(1) of CGST. Other conditions laid down under Sections 16, 17 & 18 are to be complied with.

[KASTURI SETHI]

In support of my reply above, statutory force is as under :-

Section 49 (4) of CGST Act

 "The amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed."

Further only conditions mentioned under Sections 49 A and 49(5) of CGST Act are to be fulfilled.

AI Summary

Input tax credit use across businesses permitted when credits are used in furtherance of business, subject to statutory conditions.
ITC need not be matched one to one to outward supplies and may be utilised where it is being used or intended to be used in the course or furtherance of his business. Claimant must comply with statutory eligibility, reversal and apportionment conditions for ITC. Amounts in the electronic credit ledger may be used to pay output tax subject to prescribed manner, conditions and timing and any specific procedural conditions for ledger utilisation.