Dear Experts,
As per ITC reversal of common input and input services and capital goods used for manufacturing taxable and exempted supplies by the manufacturer in one GSTIN. Apart from manufacturing turnover there is some traded value of the same taxable products.
My query pertains, as per formula of common ITC reversal , total turnover means inclusive of traded turnover should be included or excluded. Kindly clarify.
Experts Clarify ITC Reversal: Include Both Trading and Manufacturing Turnover in Total Calculation Under GST Rules 42 & 43. A discussion on a forum addresses a query about the reversal of Input Tax Credit (ITC) under the Goods and Services Tax (GST) for a manufacturer dealing with both taxable and exempt supplies. The question focuses on whether traded turnover should be included in the total turnover calculation for ITC reversal. Two experts respond, clarifying that according to the rules, the total turnover should include both trading and manufacturing activities. This interpretation is based on the formula prescribed in Rule 42 and 43, which does not differentiate between manufacturing and non-manufacturing supplies. (AI Summary)
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