KMB limited is a registered person engaged in supply of goods which are ex-empt from tax. On 22-6-2018, exemption notification was rescinded and the goods become liable for tax. Determine the eligible credit in respect of capital goods purchased on 4-12-2017 for ₹ 7,00,000 plus GST @ 12%. These capital goods have been exclusively used in supplying exempted goods. What is the amount of ITC available on capital goods?
A. ₹ 84,000
B. ₹ 71,400
C. ₹ 12,600
D. ₹ 7,00,000
Answer:B
KMB limited is a registered person engaged in supply of goods which are ex-empt from tax. On 22-6-2018, exemption notification was rescinded and the goods become liable for tax. Determine the eligible credit in respect of capital goods purchased on 4-12-2017 for ₹ 7,00,000 plus GST @ 12%. These capital goods have been exclusively used in supplying exempted goods. What is the amount of ITC available on capital goods?
A. ₹ 84,000 B. ₹ 71,400 C. ₹ 12,600 D. ₹ 7,00,000