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

Business Owner Can Use ITC from Paper Mill for Film Production, Says Expert; Must Comply with CGST Act Sections 16, 17, 18, 49. A business owner inquired about using Input Tax Credit (ITC) from raw materials for a paper mill to offset tax liabilities for a film production business under a single GST number. An expert responded that under the CGST Act, there is no requirement for a one-to-one correlation between inputs and outputs. ITC can be utilized if it is used or intended for business purposes, as per Section 16(1). Compliance with other conditions in Sections 16, 17, 18, and 49 of the CGST Act is necessary, allowing the use of ITC for any output tax payment.