As a small or medium business owner in India, it is crucial to have a complete understanding of the Goods and Services Tax (GST) and how it impacts your business. One of the most important aspects of GST is the ability to claim credit under the 60%/40% scheme.
The 60%/40% scheme is a special provision under the GST that allows registered taxpayers to claim input tax credit. The scheme applies to goods and services that are used partly for business and partly for personal use. Under this scheme, the taxpayer can claim 60% of the input tax credit on goods and services that are used for business purposes and 40% of the input tax credit on goods and services that are used for personal purposes.
Claiming credit under the 60%/40% scheme is a fairly simple process. Here are the steps you need to follow:
While claiming credit under the 60%/40% scheme, there are a few things that you need to keep in mind:
Claiming credit under the 60%/40% scheme can help small and medium business owners in India to save money and optimize their tax payments. However, it is important to ensure that you are eligible to claim credit under the scheme and that you follow the correct process to claim credit.
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