https://www.taxtmi.com/forum/issue?id=117891 Input Tax Credit must be restricted where inputs are used partly for taxable supplies and partly for exempt supplies; the credit attributable to exempt supplies must be reversed with interest. In the stated fact pattern, power used for manufacturing is taxable while power sold outside is exempt, so the ITC portion attributable to the exempt sale must be disallowed. Allocation practice and AAR precedents support calculating reversal in proportion to exempt supplies, commonly by a turnover-based mechanism rather than solely by physical usage. en-us Mon, 04 Apr 2022 15:06:37 +0530 Thu, 23 Jan 2025 15:54:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=117891 Input Tax Credit must be restricted where inputs are used partly for taxable supplies and partly for exempt supplies; the credit attributable to exempt supplies must be reversed with interest. In the stated fact pattern, power used for manufacturing is taxable while power sold outside is exempt, so the ITC portion attributable to the exempt sale must be disallowed. Allocation practice and AAR precedents support calculating reversal in proportion to exempt supplies, commonly by a turnover-based mechanism rather than solely by physical usage. Discussion-Forum GST Mon, 04 Apr 2022 15:06:37 +0530 https://www.taxtmi.com/forum/issue?id=117891