Dear experts,
As per Notification No.02/2022-Central Tax (Rate) dated 31.03.2022 my query as stated below.
1. Can the seller charge and collect 6% from the ultimate customer without availing ITC.
2. Is that ultimate customer eligible to avail the ITC as charged @ 6% by the seller?
Please share your opinion. Thanks in advance.
Clarification on Input Tax Credit Eligibility for 6% GST Under Notification 02/2022-Central Tax (Rate) A participant in a discussion forum inquired about the eligibility of Input Tax Credit (ITC) under GST as per Notification No. 02/2022-Central Tax (Rate) dated 31.03.2022. The query was whether a seller could charge 6% GST without availing ITC and if the ultimate customer could avail ITC at this rate. An expert responded that while sellers of exempted goods cannot claim ITC for GST paid on inputs, the notification does not prevent the recipient from claiming ITC on the 6% GST charged. The inquirer expressed gratitude for the clarification. (AI Summary)
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