reversal of common input credit used for both taxable and non taxable supplies

[rao rao]

As per 42 of CGST 2017 common input credit used for both taxable and non taxable supplies should be reversed. I want know whether credit can be availed after deducting the items mentioned in Rule 42 or it must be reversed after taking credit in GSTR 3B and then only reversed.

AI Summary

Debate on Input Credit Reversal Under GST: Rule 42 Compliance and GSTR 3B Reporting Procedures A forum discussion centered on the reversal of common input credit under GST, specifically concerning the use of credit for both taxable and non-taxable supplies as per Rule 42 of the CGST Act, 2017. Participants debated whether credit should be availed after deducting specified items or reversed after taking credit in GSTR 3B. Responses suggested showing all credits in table 4(A) and reversals in table 4(B) of GSTR 3B, with some emphasizing procedural compliance. It was noted that procedural lapses could be rectified in the GSTR-9 annual return, and the importance of maintaining separate accounts for taxable and non-taxable supplies was highlighted.