Reversal of ITC in case of Nil Rated Supply of Goods

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..... Reversal of ITC in case of Nil Rated Supply of Goods
Query (Issue) Started By: - SolarworldEnergySolutions PrivateLimited Dated:- 25-12-2024 Last Reply Date:- 29-12-2024 Goods and Services Tax - GST
Got 6 Replies
GST
Dear Experts, We have imported Oats Grains from outside India and Sold the same domestically apart from some other taxable supplies. Since the said items falls under HSN .....

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..... 1004 in Schedule I (List of Nil Rated Goods), we have not charged GST on sale and accordingly declared as Nil rated supply in GST return. Is there any reversal of ITC required in such scenario? Please given reference if yes/no. Thank you Reply By RaamSrinivasan Kalpathi: The Reply: Yes ITC reversal is mandatory not only on the directly related supplies but on the proportionate common inputs li .....

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..... ke rent, consultancy, audit fees, stationery relating to the said period. Thanks Reply By KALLESHAMURTHY MURTHY: The Reply: Dear Sir, I concur with Sri Sri Kalpathi Sir. Exempted supplies along with Taxable supplies required to reverse ITC proportionately as provided under Rule 42 of the GST Law. Reply By KASTURI SETHI: The Reply: Yes, reversal is required as per Section 17 (1) & (2) of CGST .....

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..... Act, 2017. Reply By Shilpi Jain: The Reply: Specific expenses for making the exempt supplies (GST on machinery, etc.) - not eligible for credit. Common expenses (like rent, etc.) - to be claimed only in proportion of taxable turnover during the year. Reply By KALLESHAMURTHY MURTHY: The Reply: Dear Sirs, I do agree with Sri Devara Sivaprasad. 'Seigniorage' charges are similar to Roya .....

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..... lty charges and are payable under RCM as Sri Kasturi Sethi Ji opined. The query does not explain how it was paid under FCM. Once tax liability is admitted on the same, there is no need to pay again. Reply By KALLESHAMURTHY MURTHY: The Reply: The reply at No. 5 is related to Query Issue ID 11948 dated 26-12-2024 wrongly uploaded under this issue. The same may please be read appropriately.
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..... Discussion Forum - Knowledge Sharing .....

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