https://www.taxtmi.com/forum/issue?id=117812 Supply of shovels is exempt; entitlement to Input Tax Credit on tax paid for raw materials depends on whether the taxpayer makes taxable outward supplies. If the taxpayer has taxable supplies, ITC on purchases may be availed and used against taxable liabilities without one to one correlation. Where outward supplies are only exempt, ITC on inputs used for those supplies is not claimable and refunds for ITC accumulated due to exempt supplies are not available. ITC may be accumulated and utilised later if taxable supplies are undertaken, subject to eligibility to avail credit. en-us Sat, 12 Feb 2022 09:09:05 +0530 Thu, 23 Jan 2025 15:54:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=117812 Supply of shovels is exempt; entitlement to Input Tax Credit on tax paid for raw materials depends on whether the taxpayer makes taxable outward supplies. If the taxpayer has taxable supplies, ITC on purchases may be availed and used against taxable liabilities without one to one correlation. Where outward supplies are only exempt, ITC on inputs used for those supplies is not claimable and refunds for ITC accumulated due to exempt supplies are not available. ITC may be accumulated and utilised later if taxable supplies are undertaken, subject to eligibility to avail credit. Discussion-Forum GST Sat, 12 Feb 2022 09:09:05 +0530 https://www.taxtmi.com/forum/issue?id=117812