alleryStart learning →Inputs serve taxable and exempt supplies. Credit is limited to which?
AExempt supplies alone
BTaxable and zero-rated
CSupplies in the State only
DSupplies to registered buyers
Answer & Solution
Correct answer: B. Taxable and zero-rated
Section 17(2) limits credit to input tax attributable to taxable supplies, which expressly include zero-rated supplies.
Keep practising Input Tax Credit
Browse all Input Tax Credit questions for CA Final, or explore more Indirecttaxlaws topics.
Related questions
An Input Service Distributor is best described as what?Which return must be filed before claiming ITC under Section 16(2)(d)?ITC on a supply requires that the tax charged has been actually what?A bank has eligible ITC of Rs 80,000 in a month and picks the 50 per cent option. What creCommon input ITC Rs 90,000; two-thirds relates to taxable supplies, rest exempt. Credit alInputs carry total ITC of Rs 60,000, and 25 per cent of their use is for non-business purpInvoice Rs 1,00,000 plus 18% GST unpaid beyond 180 days. ITC added back, ignoring interestInter-State sale Rs 5,00,000, inputs Rs 3,00,000, IGST 12% on both. Net IGST?