Page 48 - Chap7 ITC

GST on freight paid to GTA for intra-State of exempt 12,000
goods @2.5%under reverse charge [ITC on input services [60,000 × – -
used exclusively in relation to exempt supplies is not 20%]
available.]

GST on telephone expenses @ 9% [ITC of services used
in the course or furtherance of business is available.] 30,000 2,700 2,700

Premium paid on insurance takenon car used for firm’s
work [ITC is blocked u/s 17(5) on general insurance 8,500 – – –
services relating to those motor vehicles which are
ineligible for ITC.]
Outdoor catering services [ITC on outdoor catering is
blocked u/s 17(5) if the same is not used for making an 40,000 – – –
outward supply of outdoor catering or as an element of a
taxable composite/ mixed supply.]

GST on monthly rent for premises of sales outlet @ 9%
[ITC of services used in the course or furtherance of 60,000 – 5,400 5,400
business is available.]

ITC credited to the electronic ledger 1,80,000 3,69,300 3,69,300

(2)Computation of common ITC available for apportionment

Particulars IGST( )₹ CGST(₹) SGST(₹)
ITC credited to Electronic Credit Ledger 1,80,000 3,69,300 3,69,300
Less: ITC on taxable goods 1,80,000 3,60,000 3,60,000
Less: ITC on freight paid to GTA for transportation of taxable goods 1,200 1,200
Common credit for apportionment – 8,100 8,100

(3) Computation of ITC attributable towards exempt supplies

Particulars IGST ( )₹ CGST ( )₹ SGST ( )₹

ITC attributable towards exempt supplies = 736 736
Common credit x (Aggregate value of exempt supplies during the tax
period/ Total turnover during the tax period)
= ₹ 8,100 x ₹ 6,00,000 / ₹ 66,00,000 = ₹ 736
(4) Computation of ITC available for utilization towards payment of tax in terms of rule 86B

Particulars IGST (₹) CGST (₹) SGST (₹)
Maximum amount of output tax liability that can be discharged from 2,67,300 4,00,950 4,00,950
E. Credit Ledger [99% of Output tax liability] (15,00,000 [45,00,000 [45,00,000
x18%x99%) ×9%×99%] × 9%×99%]

Amount of ITC available for utilization towards payment of tax 3,68,564 3,68,564
[Since the ITC available in ECrL after reversal thereof is lower than the 1,80,000 [3,69,300 [3,69,300
aforesaid amount, entire ITC can be utilised towards payment of GST.] – 736] – 736]

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