ITC on clearing agents bills for high seas sales eligibility

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..... ITC on clearing agents bills for high seas sales eligibility
Query (Issue) Started By: - Madhavan iyengar Dated:- 6-2-2019 Last Reply Date:- 11-2-2019 Goods and Services Tax - GST
Got 4 Replies
GST
Where goods are purchased and sold on highseas basis ( which is treated as no supply post 01/02/2019) is the GST credit of clearing agent charges, eligible to be taken Reply By KASTURI SET .....

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..... HI: The Reply: In my view, ITC is eligible . Clear Agent 's Service is independent of 'No Supply' activity. Reply By Mahadev R: The Reply: I concur with Kasturi Sir. After the amendment now, for the purpose of Section 17 which restricts ITC on exempt supply, the expression ''value of exempt supply'' shall not include the value of activities or transactions specifie .....

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..... d in Schedule III, except those specified in paragraph 5 of the said Schedule. Reply By Madhavan iyengar: The Reply: But the high seas sales is to be shown as no supply under Non-GST supplies, thus it is not an exempt supply at all. Being a non gst supply can credit be availed of service exclusively used for non-gst supplies. kindly clarify Reply By Mahadev R: The Reply: ITC is restricted in S .....

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..... ection 17. When there are exempt+ taxable supplies involved, Rule 42 applied which requires identification of inputs/input services used exclusively for exempt supplies as well. However, according to new explanation, Schedule III items not to be considered as exempt supplies. Therefore, reversal may not arise according to me. Experts can correct my understanding
Discussion Forum - Knowledge Sh .....

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