SS Ltd., a registered person under GST, is manufacturing taxable goods. The company supplies following information relating to GST paid on purchases made and input services availed in July, 2018: GST Paid (₹) Trucks used

CS Executive · Tax Laws · PYQS · June 2019
SS Ltd., a registered person under GST, is manufacturing taxable goods. The company supplies following information relating to GST paid on purchases made and input services availed in July, 2018: GST Paid (₹) Trucks used to bring raw materials 1,40,000 Raw materials purchased (to be received in August, 2018) 2,10,000 Inputs are to be received in four lots. The second lot was received during this month 1,00,000 GST paid on six capital goods (out of the six, the invoice of one item was missing on which a GSTof ₹60,000 was paid) 3,80,000 Calculate the amount of input tax credit available to SS Ltd., for the month of July, 2018. Assume that all the conditions for availing ITC are satisfied.

Answer & Explanation:

Calculation of Input Tax Credit (ITC) available to SS Ltd. for July' 2018 Particulars Amount (₹) Input tax paid on trucks used for transportation of goods is allowable 1,40,000 Input tax paid on purchase of raw material - ITC allowed only on the receipt of goods- cannot be availed now - Input tax paid for four lots. Now second lot was received - other two lots are yet to be received- ITC allowed only after receiving all lots - GST paid on six capital goods- ITC cannot be claimed on missing invoice. Hence, ₹3,80,000-₹60,000 allowable 3,20,000 Total ITC available 4,60,000

Topics: GST

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