A banking company has ₹52,000 by way of input tax credit for the month of January, 2021. How much of input tax credit it can avail and how much would lapse ?

CS Executive · Tax Laws · PYQS · June 2021
A banking company has ₹52,000 by way of input tax credit for the month of January, 2021. How much of input tax credit it can avail and how much would lapse ?
(A) ₹26,000 and balance 50% of ITC would lapse
(B) ₹13,000 and balance 75% of ITC would lapse
(C) ₹39,000 and balance 25% of ITC would lapse
(D) ₹52,000 and nothing would lapse

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: GST

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