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Entire Input tax Credit available even if part of input goes in by-product or waste

Entire Input tax Credit available even if part of input goes in by-product or waste

Entire input tax credit is available, even if part of input goes in by-product or waste like sludge which is not taxable. Principle of proportionate apportionment is not applicable – Ruchi Soya Industries v. State of Madhya Pradesh (2014) 70 VST 40 (MP HC DB) – – following CST v. Bharat Petroleum Corporation Ltd. (1992) 2 SCC 220 = 85 STC 220 (SC).

In CST v. Bharat Petroleum Corporation Ltd. (1992) 2 SCC 220 = 85 STC 220 (SC), it was held that a refinery will be entitled to full set off even if part goes in sludge.

GST-Goods and Service Tax Updates | Tina Saha |