Page 19 - Ch_10 ITC

8 Outdoor catering services Nil ITC is blocked u/s 17(5)(b) of CGST Act on catering services except
taken for a Meeting organised when such services are used by a registered person for making

in the factory outward catering supply or as an element of a taxable composite or
mixed supply or provided by an employer to its employees under a
statutory obligation.
9 Payment made for material Nil ITC is blocked u/s 17(5)(d) of CGST Act on goods &/or services
and to contractor for received by a taxable person for construction of an immovable

construction of staff quarter property on his own account including when they are used in the
course or furtherance of business.

10 Input purchased was 80,000 As per explanation to sec 16(2)(b), goods delivered to a third
directly delivered to Mr. person on direction of registered person are deemed to have
Joe, a job worker & a been received by such registered person. So, ITC is available to
registered supplier registered person even though he did not receive the goods.

Total ITC available 7,03,000

CCP 10.07.27.00
Shine Ltd., a registered manufacturer, is engaged in taxable supply of goods. It procured the following
goods during October, 20XX. Determine the amount of Input Tax credit available by giving necessary
explanation for treatment of various supplies of goods.

S. No. Description of Goods ITC (`)
1 Laptop purchased for factory unit 40,000
2 Goods used for purpose other than business 27,000
3 Capital goods used for making outward supplies to SEZ unit 52,000

4 Capital Goods purchased from a composition dealer 25,000
5 Goods purchased from Lata Ltd., the details of which are not uploaded in GSTR - 1 by 20,000
Lata Ltd. but tax is deposited to Government within due date.

6 Battery purchased from Exide Ltd. for which invoice is issued in Oct, 20XX but 54,000
payment is made in Nov, 20XX
7 Goods purchased from Asha Ltd & payment is also made but tax has not been 86,500
deposited by Asha Ltd. to Government & also not reported in GSTR - 1
Answer:-

Computation of Input Tax credit available to Shine ltd. for October, 20XX:-
S.No. Description of Goods ITC (₹) Explanation
1 Laptop purchased for factory 40,000 ITC can be availed u/s 16(1) of CGST Act for goods

unit (i.e. laptop) used in the course or furtherance of business.
2 Goods used for purpose Nil ITC is blocked u/s 17(5)(g) of CGST Act on goods used for
other than business personal consumption (i.e. non business use).
3 Capital goods used for making 52,000 ITC is allowed on capital goods used for making taxable
outward supplies to SEZ unit including zero-rated supplies. Supply to SEZ units are

zero rated supplies u/s 16(1) of IGST Act & hence, ITC is
available in this case.

4 Capital Goods purchased from Nil ITC is blocked u/s 17(5)(g) of CGST Act on goods on
a composition dealer which tax is paid u/s 10.

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