Question: Under GST, which of the following is eligible for input tax credit?
Options:
Personal expenses
Goods used for exempt supplies
Goods used for taxable supplies
Goods purchased for resale without tax
Correct Answer: Goods used for taxable supplies
Solution:
Under GST, input tax credit is available for goods used for taxable supplies.
Under GST, which of the following is eligible for input tax credit?
Practice Questions
Q1
Under GST, which of the following is eligible for input tax credit?
Personal expenses
Goods used for exempt supplies
Goods used for taxable supplies
Goods purchased for resale without tax
Questions & Step-by-Step Solutions
Under GST, which of the following is eligible for input tax credit?
Step 1: Understand what input tax credit (ITC) means. ITC is a credit that businesses can claim for the tax they paid on purchases used for their business.
Step 2: Know that under GST (Goods and Services Tax), businesses can claim ITC for goods and services they buy.
Step 3: Identify that ITC is only available for goods that are used to make taxable supplies (goods or services that are sold and taxed).
Step 4: Remember that if the goods are used for non-taxable supplies or personal use, ITC cannot be claimed.
Input Tax Credit (ITC) – ITC allows businesses to reduce the tax they have paid on inputs from their output tax liability, applicable to goods used for taxable supplies.
Taxable Supplies – Goods or services that are subject to GST and for which input tax credit can be claimed.
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