Nil rate of tax

Indirect Taxation

What are the items covered under nil rate of tax ? And ITC of these goods are allowed or not?

Mansha Tutlani

CA Final

★ 555

14-Oct-22 11:21

511

Answers (2)

Mostly nil rate is for essential and notified goods and no ITC can't be claimed .common credit should be reduced proportionaly

Gokul Nath

CA Inter

★ 605

14-Oct-22 11:29

Nil rate refers to those items where the tax rate is Zero. Example: Milk, vegetables, fruits etc. In case of nil rated, no ITC is allowed since nil rated is covered under exempt supplies.

Shiva Teja

Faculty

14-Oct-22 11:52