ITC on pre-operative expenditure
Query (Issue) Started By: – LAKSHMINARAYANAN TR Dated:- 20-4-2018 Last Reply Date:- 23-4-2018 Goods and Services Tax – GST
Got 9 Replies
GST
Hi
\nMay 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?
\nRequest expert opinion please
\nbest regards
\nDurai
\nReply By Rajagopalan Ranganathan:
\nThe Reply:
\nSir,
\nSection 16 (1) of CGST<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s not differentiate between pre and post operative supplies. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n not disposed of by way of gift or free samples and the ITC is not blocked. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" ITC on pre-operative expenditure Query (Issue) Started By: – LAKSHMINARAYANAN TR Dated:- 20-4-2018 Last Reply Date:- 23-4-2018 Goods and Services Tax – GSTGot 9 RepliesGSTHi 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 … Continue reading “ITC on pre-operative expenditure”<\/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-11492","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11492","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=11492"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/11492\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nRegards
\nCA Susheel Gupta
\n8510081001, 9811004443
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nThe 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.
\nReply By CS SANJAY MALHOTRA:
\nThe Reply:
\n 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.
\nReply By KASTURI SETHI:
\nThe Reply:
\nSh.CS Sanjay Malhotra Ji,
\n Sir, Thanks a lot for<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nCA Susheel Gupta
\nReply By CS SANJAY MALHOTRA:
\nThe Reply:
\nITC 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.
\nReply By CASusheel Gupta:
\nThe Reply:
\nRespected Sanjay ji
\nAgreed that No one avails ITC if they know product is charged to nil GST.
\nMy 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."
\nRegards
\nReply By LAKSHMINARAYANAN TR:
\nThe Reply:
\nDear All
\nMany thanks for your valuable suggestions, i<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n