Apni Law Staff asked 2 years ago
We’re a steel cutting unit in India, selling goods in two ways: trading goods (cleared with duty reversal under Rule 3(5)) and manufactured goods (cleared with duty payment based on transaction value). We pay excise duty for both types of goods.
Since we don’t sell any exempt goods, we’d like to understand if Rule 6(3)(A) applies to reversing Input Service Credit for both our trading and manufacturing activities.
Best Answer
Apni Law Staff answered 2 years ago
Rule 6(3)(A) of the Central Goods and Services Tax (CGST) Rules, 2017, applies to both your trading and manufacturing activities as you are not selling any exempt goods. You can reverse the input tax credit for both categories of goods where the final goods are sold without payment of GST.
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