Page 248 - CA Final GST

Badlani Classes

B- such inward supply of goods or services or both of a
particularcategory is used by a registered person for making an
outward taxablesupply of the same category of goods or services
or both or as part of ataxable composite or mixed supply; and
iv- travel benefits extended to employees on vacation such as leave
orhome travel concession;
c- works contract services when supplied for construction of an
immovableproperty (other than plant and machinery) except where it is an
input service for furthersupply of works contract service;
d- goods or services or both received by a taxable person for construction of
animmovable property (other than plant or machinery) on his own account
includingwhen such goods or services or both are used in the course or
furtherance of business.

Explanation.–For the purposes of clauses (c) and (d), the
expression“construction” includes re-construction, renovation, additions or
alterations or repairs,to the extent of capitalisation, to the said immovable
property;
e- goods or services or both on which tax has been paid under section 10;
f- goods or services or both received by a non-resident taxable person excepton
goods imported by him;
g- goods or services or both used for personal consumption;
h- goods lost, stolen, destroyed, written off or disposed of by way of gift or
freesamples; and
i- any tax paid in accordance with the provisions of sections 74, 129 and 130.
6- The Government may prescribe the manner in which the credit referred to insub-
sections (1) and (2) may be attributed.

Explanation.–For the purposes of this Chapter and Chapter VI, the expression
“plantand machinery” means apparatus, equipment, and machinery fixed to
earth by foundation orstructural support that are used for making outward supply
of goods or services or both andincludes such foundation and structural supports
but excludes-
i- land, building or any other civil structures;
ii- telecommunication towers; and
iii- pipelines laid outside the factory premises.
Example 6:Mr X is a cosmetic dealer and purchased cosmetic goods worth Rs 3,00,000/-
from a manufacturer, on which GST of Rs 54,000/- (i.e. @ 18%) has been paid. Out of
cosmetic purchased, Rs 1,00,000/- was used by him for personal purposes. ITC can be
availed by him only Rs 36,000/- (i.e. Rs 2,00,000 X 18%).
Example 7 :Mr X is a manufacturer & purchased Raw material of Rs 1,00,000/- on which
GST was paid @ 18% (i.e. Rs 18,000/-). These Raw material has been used partly (say
60%) for taxable supplies and rest for exempt supplies. Now Mr X can avail ITC to the
extent of Rs 10,200/- (i.e. 18,000 X 60%). But ITC of Rs 7,200/- cannot be availed as 40%
of supplies are exempt.
Example 8: Ganesh Travels, a tour operator, purchased a tempo for the purpose of Page247
transporting tourist. Here Ganesh can avail ITC on supply of services.

Central Goods & Services Tax Act, 2017