QUESTION
a) Input credit available on goods used for research and development, whether
sec 17(5) shall hit it or not.
b) Goods sent on job work and quantity received
less due to shrinkage. whether input credit on full quantity to be availed or
proportionate credit to be availed.
c) Export of goods on 31st march but goods
left the factory on 4th April , whether considered as export or not as on 31st
march.
ANSWER
a) Section 17(5) nowhere restricts ITC on goods used for Research & Development.
Thus ITC on goods used for research and development is eligible.
b)
Law applicable: SECTION 17 OF CGST ACT
(5) Notwithstanding anything contained in sub-section (1) of section 16 and
subsection (1) of section 18, input tax credit shall not be available in respect
of the following, namely:-
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or
free samples;
Interpretation: ITC on goods lost, destroyed, written off or
disposed of is restricted by Section 17(5). There is no restriction on claiming
ITC on loss of goods while in production.
Conclusion: As this will be considered normal loss in
the course of production, hence will be eligible to claim ITC.
c) As per the provisions of GST as well as Customs Export of goods shall be
deemed to have taken place on generation of Shipping Bill. Hence in your case as
the actual movement of goods has taken place on 4th April, therefore it will not
be considered as Export as on 31st March.