EXAMPLE-143
ABC
Finance Ltd. a non-Banking Finance company is engaged in providing banking and
financial services. Following are
the informations for the month October:-
|
S.No. 1 2 3 4 5 |
Particulars Integrated
tax paid on input Central
tax paid on input services State
tax paid on input service Integrated
tax on input services Integrated
tax on inward supply having same PAN |
Amount
(Rs) 150000 240000 240000 120000 18000 |
|
|
Total
Input tax on Input and Input service |
768000 |
Output
tax liability for the month of October in respect of Integrated tax Rs 280000
and Central tax Rs. 180000 and State tax 150000.
ABC Finance Ltd opts to avail credit of an amount equal
to 50% of input tax credit in the current FY. Thus, determine the ITC available
for the month of October in respect Central, State and Integrated Tax. Also
determine the tax payable under GST for the month October from e- credit ledger
and E- cash ledger.
Answer
Section 17(4)
provides Banking company or a financial institution including a non-banking
financial company, engaged in supplying services by way of accepting deposits,
extending loans or advances an option to either comply with the provisions of
sub-section (2), and avails credit attributable to the taxable supplies
including zero-rated supplies, or avail of, every month, an amount equal to 50
per cent of the eligible input tax credit on inputs, capital goods and input
services in that month and the rest shall lapse.
First proviso to
section further provides that the option once exercised shall not be withdrawn
during the remaining part of the financial year.
Rule 38 of
Input Tax Credit Rules,
provides the manner, followings are the steps:-
Step
1:- Determine amount of credit on inputs or input services that are attributable
exclisively for non-business purpose and are supplies under section 17(5) and shall
be indicated in GSTR-2 but not eligible for credit.
Step 2:-
Credit on inward supply from such registered person which is having same PAN as
of banking company/FI/NBFC
shall be available wholly to such person.
Step 3:-
50% of remaining ITC after above two steps admissible to the banking
company and financial institution and details shall be furnished in FORM
GSTR-2. Such amount shall be on provisional basis as per section 41 and
is
credited in e-credit ledger of the said company and provision of matching under
section 42 and 43 shall also applicable on the above amount credited.
|
|
Particulars |
Central Tax |
State Tax |
Integrated tax |
|
|
Total ITC of Central/ State
/integrated tax during the month on inputs and input Services IGST = (150000+180000+120000) CGST = 240000 SGST=240000 Less credit on Input and input service used for no-business purpose and blocked
credit u/s 17(5) Less : Credit on inward
supply from such registered person which is having same PAN (full credit
eligible on this)
Balance
credit Eligible
credit @ 50% Total
eligible credit on Central/ State / Integrated |
240000
Nil Nil 240000 120000 120000 |
240000 Nil Nil 240000 120000 120000 |
450000 Nil 18000 135000 135000 |
Computation
of payment of Output tax liability during month of October
|
|
Particulars |
Central Tax |
State Tax |
Integrated tax |
|
|
Output tax liability Eligible credit available according to above provision in E-credit
ledger Payment through E-cash ledger |
180000 120000 |
150000 120000
30000 |
280000 135000 145000 |