Page 26 - Chap7 ITC

GST paid under reverse charge on freight paid to GTA for inward transportation of non- 1,000
taxable items - [₹ 20,000 x 5%]
GST paid on monthly rent - [₹ 5,50,000 x 18%] 99,000

GST paid on packing charges [₹ 2,50,000 x 18%] 45,000
Salary paid to staff at the Store Nil
[Services by an employee to the employer in the course of or in relation to his employment
is not a supply in terms of para 1 of the Schedule III and hence, no GST is payable thereon].

GST paid on inputs used for personal purpose 5,000
GST paid on rent a cab services availed for business purpose 4,000
GST paid on items given as free samples 4,000

Total input tax involved during the month [T] 11,57,000
Computation of T1, T2, T3

Particulars Amount(`)
GST paid on monthly rent attributable to personal purposes [1/3 of `99,000] 33,000
GST paid on inputs used for personal purpose 5,000
Input tax exclusively attributable to non-business purposes [T1] 38,000

GST paid under reverse charge on freight paid to GTA for inward transportation of 4,000
exempted items
[As per section 2(47), exempt supply means, supply which may be wholly exempt from tax by way
of a notification issued under section 11. Hence, input service of inward transportation of exempt
items is exclusively used for effecting exempt supplies.]
GST paid under reverse charge on freight paid to GTA for inward transportation of non-taxable
items [Exempt supply includes non-taxable supply in terms of section 2(47). Hence, input service 1,000
of inward transportation of non-taxable items is exclusively used for effecting exempt supplies.]
Input tax exclusively attributable to exempt supplies [T2] 5,000

GST paid on rent a cab services availed for business purpose 4,000
[ITC on rent a cab service is blocked under section 17(5)(b)(i) as the same is not used by All-in-
One Store for providing the rent a cab service or as part of a taxable composite or mixed supply.

GST paid on items given as free samples 4,000
[ITC on goods inter alia, disposed of by way of free samples is blocked under section 17(5)(h)].
Input tax for which credit is blocked under section 17(5) [T3]** 8,000

**Since GST paid on inputs used for personal purposes has been considered while computing T1, the same has not
been considered again in computing T3.
ITC credited to the electronic credit ledger
C1 = T - (T1+T2+T3) = 11,57,000 – ( 38,000 + 5,000 + 8,000) = 11,06,000₹ ₹ ₹ ₹ ₹

B. Computation of Common Credit
C2 = C1 - T4
where C2 = Common Credit
T4 = Input tax credit attributable to inputs and input services intended to be used exclusively for effecting
taxable supplies
Particulars Amount ( )₹
GST paid on taxable items 9,90,000

GST paid under reverse charge on freight paid to GTA for inward transportation of taxable 5,000
items
Input tax exclusively attributable to taxable supplies [T4] 9,95,000

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