EXAMPLE-114
Mr Happy a
service provider providing service of transport of passenger and also providing
food and beverages during journey. Determine the credit eligible to Mr Happy in
respect of followings
|
S.No. |
Particulars |
GST
Paid on Input/CG/ IS |
|
1 2. 3. |
Motor
car Purchase
of food or beverages Other
input services |
440000 128000 82000 |
Answer
|
S.No. |
Particulars |
Amount
of credit (GST) Rs. |
|
1 2. 3. |
Motor
car Purchase
of food or beverages Other
input services |
440000 128000 82000 |
|
|
Total
eligible credit |
650000 |
Notes:-
1.
Section
17(5) specifies that credit on Motor vehicle and other conveyance shall not be
available under GST except when used for specified services mentioned in sub
clauses (i) and (ii).
One
of the exceptions is when used for transportation of passenger. Thus, ITC is
eligible.
2.
Section
17(5) does not provide credit on inward supply of goods or services, such as
food and beverages, outdoor catering, beauty treatment, health services,
cosmetic and plastic surgery will not be available as credit. But where such
inward supply of goods or services of a particular category is used by a
registered taxable person for making an outward taxable supply of the same
category of goods or services even whether as an element of a taxable composite
and mixed supply then credit will be available on inward supply of goods or
services. Thus, supply of food and beverages is an element of composite supply
thus credit is allowed.
3.
Other
input services as used for the purpose of business in accordance of section 16.