Compute the amount of Input Tax Credit available to GK Ltd. in respect of the following items procured by it in April, 2018: GST Paid (₹) Pollution control equipments used in the factory 1,64,000 Goods purchased for prov
CS Executive · Tax Laws · PYQS · June 2019
Compute the amount of Input Tax Credit available to GK Ltd. in respect of the following items procured by it in April, 2018: GST Paid (₹) Pollution control equipments used in the factory 1,64,000 Goods purchased for providing services during warranty period 9,000 Goods destroyed by fire 15,000 Goods given as gift to regular customers 8,000 Inputs used for quality control check 16,000 Membership of a club 15,000 Rent-a-cab services for employee to pick up and drop to home 50,000
Answer & Explanation:
Computation of Input Tax Credit (ITC) Particulars ITC (₹) Pollution control equipment procurement Allowed as per section 2(19), 16(1) & not restricted u/s 17(5) 1,64,000 Goods purchased for providing services during warranty period Allowed u/s 16(1) & not restricted u/s 17(5) 9,000 Goods destroyed by fire (not eligible) Restricted u/s 17(5)(h) - Goods given as gift to regular customers (not eligible) Restricted u/s 17(5)(h) - Inputs used for quality control check Allowed u/s 16(1) & not restricted u/s 17(5) 16,000 Membership of a club (not eligible) Restricted u/s 17(5)(b)(ii) - Rent-a-cab services for employee (not eligible) Restricted u/s 17(5)(b)(iii) - Total ITC available 1,89,000
Topics: GST
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