Rule 42 - Manner of determination of ITC in respect of input & input services and reversal thereof

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....vices intended to be used exclusively for the purposes other than business (T2) Inputs and input services intended to be used exclusively for effecting exempt supplies (T3) Inputs and input services on which credit is not available under sub-section (5) of section 17 (C1) Input tax credit credited to the electronic credit ledger [C1= T- (T1+T2+T3)] Step 2 - After calculating - Input tax credit credited to the electronic credit ledger Credit - 'C1', Calculate common credit, be denoted as 'C2' and calculated as- After calculating 'C1', Calculate common credit, be denoted as 'C2' and calculated as- (T4) Input tax credit attributable to inputs and input services intended to be used exclusively for effecting taxable supplies including zero rated supplies (C2) Common credit available for apportionment C2 = [C1 - T4] Step 3 - Determine D1 i.e., amount of ITC attributable towards exempt supplies by following formula for a tax period D1 = (E / F) x C2 Where E - Aggregate value of exempt supplies (i.e., supplies other than taxable supplies and zero rate supplies) during the tax period F - The total turnover in the State of the registered person during the tax period Re....

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....ties of excise on all excisable goods manufactured or product in India Entry 92A: - Tax on inter-state sale (CST) Entry 51: - State Excise duty on liquor, opium etc. Entry 54: - Taxes on the sale or purchase of goods other than state supply Step 4: - 'D2' - Determine the amount of ITC attributable to non - business purpose by following for a tax period D2 = 5% of C2 Step 5: - After calculating 'C2', the remainder of the common credit shall be the eligible input tax credit attributed to the purposes of business and for effecting supplies other than exempted supplies but including zero rated supplies and shall be denoted as 'C3', where C3 = C2 - (D1+D2) Step 6: - Reverse the ITC = (D1 + D2) • The amount "C3" "D1‟ and "D2‟ shall be computed separately for input tax credit of central tax, State tax, Union territory tax and integrated tax and declared in FORM GSTR-3B or through FORM GST DRC-03; • The amount equal to aggregate of 'D1' and 'D2' shall be reversed by the registered person in FORM GSTR-3B or through FORM GST DRC-03. Rule 42(2):- Except in case of supply of services covered by clause (b) of paragraph 5 of the Schedule II ....

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....ect, whichever is earlier Due date of final computation would be made * Before the due date for furnishing of the return for the month of September following the end of financial year in which the completion certificate is issued or first occupation take place of the project, * The said person shall be liable to pay interest on the said excess amount at the rate specified in section 50(1) for the period starting from the first day of April of the succeeding financial year till the date of payment. Manner of final computation Step 1: - C1 = T- (T1+T2+T3) [same as Rule 42 (1) & (2)] Step 2: - C2 = C1- T4 [same as Rule 42 (1) & (2)] Step 3: - Calculate D1 Here 'D1' - Determine the amount of ITC attributable towards exempt supplies by following for tax period D1 = (E / F ) x C2 E= aggregate carpet area of the apartments, construction of which is exempt from tax plus aggregate carpet area of the apartments, construction of which is not exempt from tax, but which have not been booked till the date of issuance of completion certificate or first occupation of the project, whichever is earlier: F= aggregate carpet area of the apartments in the project; Step 4: - Calcu....

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.... Due date of final computation would be made * Before the due date for furnishing of the return for the month of September following the end of financial year in which the completion certificate is issued or first occupation take place of the project, * The said person shall be liable to pay interest on the said excess amount at the rate specified in section 50(1) for the period starting from the first day of April of the succeeding financial year till the date of payment. Manner of final computation Step 1: - C1 = T- (T1+T2+T3) [same as Rule 42 (1) & (2)] Step 2: - C2 = C1- T4 [same as Rule 42 (1) & (2)] Step 3: - (a) The aggregate amount of common credit on commercial portion in the project (C3aggregate_comm) shall be calculated as under, C3aggregate_comm = [aggregate of amounts of C3 determined under rule 42(1) for the tax periods starting from 1st July, 2017 to 31st March, 2019, x (AC / AT)] + [ aggregate of amounts of C3 determined under rule 42(1)for the tax periods starting from 1st April, 2019 to the date of completion or first occupation of the project, whichever is earlier] Where, - AC = total carpet area of the commercial apartments in the project AT....