Page 43 - Chap24Computation of GST

Notes:

1 Input tax (CGST & SGST/ IGST) paid on inputs, input services and capital goods used in the
manufacture of taxable products viz., fresh juices & carbonated fruit drinks is available as ITC.
2 Ü Tax is payable by Bhama Ltd. @ 5% under reverse charge.
Ü Further, it is an inter-State supply since supplier is located in Ahmedabad and place of supply is
Maharashtra (location of registered recipient

3 ITC on motor vehicle for transportation of persons with seating capacity of up to 13 persons is
blocked for a supplier who is not engaged in further supply of such vehicles, transportation of
passengers or imparting training on driving such vehicles.

4 Ü IGST credit being set off against SGST liability as it can be set off against CGST and SGST
liability in any order and in any proportion.
Ü CGST and SGST credit set off against CGST and SGST liability respectively.
5 Tax payable under reverse charge, being not an output tax, cannot be set off against ITC and
thus, will have to be paid in cash.

CA VISHAL BHATTAD 09850850800 www.vsmartacademy.com V’Smart Academy 515