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Input Tax Credit when exempted as well as taxable supplies made

Input Tax Credit when exempted as well as taxable supplies made :

♦ If taxable person supplies both taxable goods or services both and exempt/non-taxable goods or services or both, he can take only proportionate           input tax credit attributable to taxable goods or services or both, as per rules.
♦ The calculation of eligible input tax credit will be made as per formula given in rule 7 of Input Tax Credit Rules.
♦ Such calculation will be done on monthly basis. At the end of financial year, actual calculations will be made and final adjustments will be made by       September month, following the financial year.
♦ In case of capital goods which are common for taxable and exempt supplies, the eligible input tax credit will be as per formula specified in rule 8 of       Input Tax Credit Rules. It will be spread over five financial years.