Latest GST Judgments

For Full Access To All Latest Judgments on GST
Click Here To Subscribe Now
Take a tour of our GST Library

The applicant has to reverse the amount of credit used in the manufacture and sell of the product which attracts nil rate or exempted from GST.

Input Tax Credit — The applicant has been granted a license for manufacture and production of Loose Cotton, Cotton Seeds, Cotton Seed Oil and by-product Cotton seed oil cake from raw cotton (NARMA). The applicant sought Advance ruling that what will be the treatment of claiming of Input Tax Credit under Section 16 of the GST Act in regard to by-product Cotton Seed Oil Cake which is taxable at 0%? The Authority ruled out that as per Section 17 (2) of GST Act, 2017 the amount of credit shall be restricted to so much of the input tax that is attributable to the taxable supplies including zero rated supplies. As the Cotton Seed Oil Cake is exempt from GST, the applicant has to reverse the amount of credit attributable to the supply of the Cotton Seed Oil Cake as per provisions and procedure prescribed under Section 17 (2) of GST Act, 2017 read with rule 42 of GST Rules, 2017. — Parmod Kumar Singala, In Re… [2019] 15 TAXLOK.COM 121 (AAR-Rajasthan)