Input Tax Credit

[VIGNESH]

sir. kindly clarrify A dealer of biscuts take a new dealership in mobile phones , he runs the business as proprietorship and uses same GST number. Can he set off the GST input on mobile against sale of biscuts or should he maintain product wise accounts and adjsut GSt according to the products sold.

AI Summary

GST Input Credit on Mobile Phone Sales Can Offset Biscuit Sales with Proper Documentation and Registration Update A dealer operating under a proprietorship with a single GST number inquires whether GST input credit from mobile phone sales can be offset against biscuit sales. Experts responded that the Central Goods and Services Tax (CGST) Act allows cross-utilization of input tax credit (ITC) across different goods. However, they advised informing the tax department in writing to prevent future allegations of tax evasion. It was also recommended to amend the GST registration to include mobile phones and maintain product-wise stock records for safety. All experts concurred on these points.