TaxTMI 
TaxTMI 
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.
reversal of common input credit used for both taxable and non taxable supplies
30 Jun 2021 
6 Replies 
2021 Views Asked by
Reversal of common input credit must be reported as deduction and reversal in returns, with rectification available in annual return.
Where inputs are used for both taxable and non taxable supplies, the portion attributable to non taxable supplies must be reversed in the return by disclosing total input credit and then showing the reversal/deduction in the prescribed return fields; omissions may be remedied by intimation or correction in the annual return, and procedural deviations can be explained rather than treated as substantive disallowance. (AI Summary)
Where inputs are used for both taxable and non taxable supplies, the portion attributable to non taxable supplies must be reversed in the return by disclosing total input credit and then showing the reversal/deduction in the prescribed return fields; omissions may be remedied by intimation or correction in the annual return, and procedural deviations can be explained rather than treated as substantive disallowance. (AI Summary)