Latest Query & Reply

We are selling tax free loose namkeens. Our purchase of material is taxable, and we have also purchased capital goods so there is ITC in our credit ledger. So whether can we claim it back or just waive it by debiting in Profit & loss A/c.

Reply

The ITC used for exempt supplies and personal purpose has to be reversed by adding the amount in output tax liability.

Hence, the amount paid as GST on purchase of inputs or capital goods will become part of the cost.