Goods and Services Tax – Started By: – LAKSHMINARAYANAN TR – Dated:- 20-4-2018 Last Replied Date:- 23-4-2018 – Hi May I see expert opinion on availing ITC on pre-operative expenses when the outward supply includes both exempt and taxable. If the Input or Input services relate to exempt or taxable supply specifically, its apparent not to avail or avail ITC appropriately. But challenge comes when common input/input services and capital goods consumed well before commencement of commercial activity of the business, how to apply rule 42 or 43? Request expert opinion please best regards Durai – Reply By Rajagopalan Ranganathan – The Reply = Sir, Section 16 (1) of CGST Act, 2017 stipulates that every registered person shall, subject to such cond
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10081001, 9811004443 – Reply By Ganeshan Kalyani – The Reply = The excess credit taken during the year can be paid with interest on or before September month of the subsequent financial year. Hence you may avail the credit now and when the year is over and you have the turover detail you can revise work and take corrective action. – Reply By CS SANJAY MALHOTRA – The Reply = Not starting commercial activity sometimes means trial run on product development taken but no supplies made. In such scenarios, ITC on input and input services are not eligible as no supply made. – Reply By KASTURI SETHI – The Reply = Sh.CS Sanjay Malhotra Ji, Sir, Thanks a lot for throwing light on the issue. – Reply By CASusheel Gupta – The Reply = Section 16 allows I
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CS SANJAY MALHOTRA – The Reply = ITC is linked with supply which is main criteria in GST. Units avail ITC during factory set up considering that they shall be making supply of taxable goods. No one avails ITC if they know product is charged to nil GST. – Reply By CASusheel Gupta – The Reply = Respected Sanjay jiAgreed that No one avails ITC if they know product is charged to nil GST.My reply was restricted to that since during trial run there is no supply and in the absence of supply during trial run ITC is not allowed. Regards – Reply By LAKSHMINARAYANAN TR – The Reply = Dear All Many thanks for your valuable suggestions, interestingly many dimensions have come out in this forum. I would like some details to my original question based on
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