Please help for
following query in GST
Our client is engaged
in 2 services 1. Housekeeping and 2. Sale of Uniform
Both the supply made
to the government.
Now the 1st service is
exempt from GST as it is labour service only to the government.
and Sale of uniform is
taxable service @12%
Now my Question is if he incurred admin exp
[like purchase of computer accessories, Printing of Diaries etc.] then he can
avail the ITC of the same against taxable Services, If yes, then How Much?
common taxable inputs and/or services are used for making both taxable and
non-taxable/ exempt supplies then the quantum of credit on such inputs/input
services is restricted to the credit attributable to taxable supplies. In
other words the total credit will be subject to pro-rata reversals i.e.
reversal in proportion to value of non-taxable/exempt supplies. (see Rule 42 of
the CGST Rules, 2017 for computation of credit in this case).
your client is engaged in both exempted as well as taxable supply under
GST, he can only avail the proportional amount of ITC attributable to taxable
portion of ITC pertaining to exempted supplies is calculated by the following
pertaining to exempted supply= Exempted turnover X common
The formula calculates the
amount by the proportionate method. Such amount is deemed to be the amount of
ITC pertaining to exempted supplies and the assessee can not avail the benefit