ITC Reversal as per Rule 42
Query (Issue) Started By: – LAKSHMINARAYANAN TR Dated:- 1-3-2018 Last Reply Date:- 3-3-2018 Goods and Services Tax – GST
Got 3 Replies
GST
If more than one business vertical are under same GSTIN itself, while applying Rule 42 for ITC Reversal- Total Turnover of entire GSTIN to be taken or same can be split into segment wise also ?
\nFor ex:- Say, under one GSTIN there exists three Business Vertical – Hotel, Courier & Plastic. Hotel vertical has taxable and exempt supplies to calculate ITC Reversal for common input credit can we use the following
\nCommon ITC (of Hotel Vertical) * Exempted Supply in Hotel Vertical
\n–
\nTotal Supply of Hotel Vertical
\nOr We have to consider the Total supply of all vertica<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n on ₹ 10000\/- which formula is correct ? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" ITC Reversal as per Rule 42 Query (Issue) Started By: – LAKSHMINARAYANAN TR Dated:- 1-3-2018 Last Reply Date:- 3-3-2018 Goods and Services Tax – GSTGot 3 RepliesGSTIf more than one business vertical are under same GSTIN itself, while applying Rule 42 for ITC Reversal- Total Turnover of entire GSTIN to be taken or same can … Continue reading “ITC Reversal as per Rule 42”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-10684","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/10684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10684"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/10684\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n10000 * 3L\/10L = ₹ 3000\/- + 500 (5% of 10000) OR
\n10000*13L\/30L = ₹ 4333\/- + 500
\nExperts advice please.
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nturnover of plastic, hotel and courier division put together is ₹ 30 lacs.
\ntotal common input tax credit is ₹ 10 thoudand.
\nformula
\n10,000 x 10 lacs ÷ 30 lacs = ₹ 3,333\/- ( it means out of common credit of ₹ 10 thousand , ₹ 3,333\/- is attributable to each division say, plastic, hotel and courier
\n₹ 3,333\/- of plastic division is ineligible credit.
\n₹ 3,333\/- of courier division is fully creditable .
\n₹ 3,333\/- of hotel division need further birfucate into tax attributable to taxabl<\/p>\n
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