What constitutes inputs under the GST framework?

Inputs are any goods, excluding capital goods, that a business acquires for use in its operations in the course or furtherance of business.

Fill in the blank: Inputs are typically used for ___ in a supplier's business.

Day-to-day operations

True or False: Capital goods are considered inputs under GST.

False. Capital goods are excluded from the definition of inputs.

What is the significance of Input Tax Credit (ITC) for businesses?

ITC allows businesses to claim credit for the GST paid on inputs, thereby reducing their overall tax liability.

Riddle: I help businesses save on taxes, but I'm not a direct expense. What am I?

Input Tax Credit (ITC)

What are the criteria for a registered taxpayer to claim ITC on capital goods?

Criteria for Claiming ITC

• Used only for business.

• Recorded as capital assets.

• No ITC claimed on depreciation.

Fill in the blank: The Input Service Distributor (ISD) distributes ITC based on ___ among its branches.

Proportional use

What happens if a business does not receive goods sent for job work back within the specified time?

The inputs will be deemed as supplied by the principal manufacturer on the date they were sent out.

Explain the conditions under which ITC can be claimed for capital goods used partly for exempted supplies.

ITC can be claimed proportionately based on the usage for taxable supplies; the portion used for exempt supplies must be disallowed.

What is the purpose of maintaining accurate records of inputs under GST?

Accurate records support ITC claims and ensure compliance with GST requirements.

Fill in the blank: ITC cannot be claimed on items used exclusively for ___ purposes.

Personal

Riddle: I am tax paid on inputs, but if used wrongly, I can lead to penalties. What am I?

Input Tax Credit (ITC)

What is the time limit for claiming ITC on a particular invoice?

ITC must be claimed by the earlier of 30th November of the next financial year or the date of filing the annual return.

True or False: The ISD can distribute ITC for capital goods purchased by its branches.

False. ISD cannot distribute ITC for capital goods.

What is meant by 'common credit' in the context of GST?

Common credit relates to GST usage.

• Input tax credit concept.

• Applies to business and personal.

• Claimed proportionately based on use.