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.
