How to calculate reversal of ITC in case supplies are partially taxable and partially exempt.
In my case maintenance is fully except however society has other income which is suject to GST.
While calculating ITC reversal can I exclude Property tax collection , water charges collection , electricity charges collection in total turnover. Because PT , Water and Electricity department do not levy GST.
As per section 17(2) of CGST Act,
(2) Where the goods or services or both are used by the registered person partly for
effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies.
So you need to proportionally apportion the credit. You should not exclude any supply from your total supply value.
Sign up to discuss taxation, accounting and finance topics with experts from all over India.Join Discussion