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  • Unit - 2 Eidt Exmaples Itc

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    Chirag Chaudhary
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    Mr. B can claim an input tax credit of Rs. 5,000 for the goods purchased from Mr. A. This credit can be reversed if the invoice is not paid within 180 days, but can be reclaimed if subsequently paid. For a car purchased for personal use, even if used to travel to his showroom, Mr. A cannot claim input tax credit of Rs. 80,000 GST paid. However, if the car was purchased for transporting goods as part of a transport business, the credit could be claimed. For goods worth Rs. 20,000 that were distributed free of cost, with IGST of Rs. 5,000 paid, no input tax credit is available as it

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    UNIT - 2 EIDT EXMAPLES ITC

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    Mr. B can claim an input tax credit of Rs. 5,000 for the goods purchased from Mr. A. This credit can be reversed if the invoice is not paid within 180 days, but can be reclaimed if subsequently paid. For a car purchased for personal use, even if used to travel to his showroom, Mr. A cannot claim input tax credit of Rs. 80,000 GST paid. However, if the car was purchased for transporting goods as part of a transport business, the credit could be claimed. For goods worth Rs. 20,000 that were distributed free of cost, with IGST of Rs. 5,000 paid, no input tax credit is available as it

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    3K views4 pages

    Unit - 2 Eidt Exmaples Itc

    Uploaded by

    Chirag Chaudhary
    Mr. B can claim an input tax credit of Rs. 5,000 for the goods purchased from Mr. A. This credit can be reversed if the invoice is not paid within 180 days, but can be reclaimed if subsequently paid. For a car purchased for personal use, even if used to travel to his showroom, Mr. A cannot claim input tax credit of Rs. 80,000 GST paid. However, if the car was purchased for transporting goods as part of a transport business, the credit could be claimed. For goods worth Rs. 20,000 that were distributed free of cost, with IGST of Rs. 5,000 paid, no input tax credit is available as it

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    of 4

    1. Mr. A sells goods worth Rs 1,00,000 to Mr. B. on 01.08.2020 on credit.

    GST, @ 5 % has
    been assumed which comes to Rs 5,000. The invoice value, thus, is Rs. 1,05,000. Mr. B
    decides to pay the invoice amount later on. Now, while filing the GST returns for August
    2020, can Mr. B claim input tax credit?
     Mr. B can claim the input tax credit of Rs 5000. 180 days (from 01.08.2020) lapses on
    27.01.2021. If Mr. B does not pay the invoice amount by this date then the ITC of Rs 5000
    will be reversed in the return and added to output tax liability. If subsequently, he pays the
    invoice amount, such ITC will be re-availed.

    2. Mr. A buys a passenger car worth Rs 300000 with GST Rs 80000. He deals in furniture and
    electronics and uses the car to travel to his showroom.
     In this case, even if the car is used for his business, ITC Rs 80000 cannot be claimed.
    In case he deals in transport business and buys a goods vehicle (like trucks) for
    transporting of goods, he can avail the ITC.
     If he deals in cars and buys cars (as stocks) for reselling, he can avail ITC. In case, he
    deals in passenger transport services and gives the car on hire for tourism, he can
    claim the ITC.
    3. Worth Rs. 20,000 Goods distributed as free sample. On that IGST Paid on the same Rs.5,000.
    Find out amount available as input tax credit?
    Block credit = No input tax credit is available

    4. Input Output
    IGST 92,000 90,000
    CGST 5,000 2,41,200
    SGST 9,00,000 2,41,200

    IGST = 90,000 CGST = 2,41,200 SGST = 2,41,200


    IGST = (90,000) IGST = (2000) IGST = NIL
    CGST = 00000 CGST = (5,000) CGST NOT SGST
    SGST = 00000 SGST NOT CGST SGST = (2,41,200)

    IGST = NILL
    CGST= 2,34,200 LIABILTY
    SGST = 6,58,800 CREDIT
    5. INPUT OUT PUT
    IGST 7,60,000 5,09,400
    CGST 3,40,000 5,22,000
    SGST 3,70,000 5,22,000
    IGST = 5,09,400 CGST = 5,22,000 SGST = 5,22,000
    IGST (5,09,400) IGST (2,50,600) IGST ----
    CGST ----- CGST (2,71,400) SGST (3,70,000)
    SGST -----

    IGST = NIL
    CGST = 68,600 credit
    SGST = 1,52,000 liability
    IGST = 15,00,000 CGST = 8,00,000 SGST = 8,00,000
    IGST 12,00,000 IGST 0 IGST 0
    CGST 3,00,000 CGST 4,00,000 SGST 3,00,000
    SGST 0

    IGST 0
    CGST 3,00,000
    SGST 5,00,000

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