Travis, a manufacturer of roofing sheets, is having - 1,60,000 as opening balance of ITC for June month. He provides the following information…

Computation of ITC available and net GST payable from Electronic Cash Ledger for the month of June Particulars Amount (₹) GST on taxable turnover for the month of June [₹ 60,00,000 × 18%] 10,80,000 Less: ITC available for June month in terms of rule 42 Opening balance of ITC available in the Electronic Credit Ledger 1,60,000 Add: ITC credited to the Electronic Credit Ledger for the month of June [Refer working note below] 40,000 Less: ITC out of common credit attributable to exempt supply [Refer working note below] (1, 290) 1,98,710 Net GST payable from Electronic Cash Ledger 8,81,290 Working Note: Computation of ITC (out of common credit) attributable to exempt supplies Particulars Amount (₹) Input tax on raw materials [Note1] 40,000 Input tax on catering for housewarming [Note 2] Nil Input tax on inputs contained in exempt supplies [Note 3] Nil Input tax on cosmetic and plastic surgery of CEO of company [Note 4] Nil ITC credited to the Electronic Credit Ledger in terms of rule 42 in the month of June 40,000 Common credit [Note 5] 40,000 ITC attributable towards exempt supplies to be reversed [Note 6] 1,290 Notes: Being used in the course or furtherance of business, input tax on raw materials is available as ITC and is credited to the Electronic Credit Ledger [Section 16(1) of the CGST Act, 2017].ITC on outdoor catering is blocked in terms of section 17(5) of the CGST Act, 2017 if the same is not used for making an outward supply of outdoor catering or as an element of a taxable composite/mixed supply. Hence, the same is not credited to the Electronic Credit Ledger [Rule 42 of the CGST Rules, 2017].Input tax on inputs used exclusively for making exempt supplies is not available as ITC and thus, not credited to the Electronic Credit Ledger in terms of rule 42 of the CGST Rules, 2017.ITC on cosmetic and plastic surgery is blocked in terms of section 17(5) of the CGST Act, 2017 if the same are not used for making the same category of outward supply or as an element of a taxable composite/ mixed supply. Hence, the same is not credited to the Electronic Credit Ledger [Rule 42 of the CGST Rules, 2017].Since there are no inputs and input services which are used exclusively for effecting taxable supplies, the entire ITC credited to Electronic Credit Ledger, i.e.40,000 will be the common credit [Rule 42 of the CGST Rules, 2017].ITC attributable towards exempt supplies = Common credit x (Aggregate value of exempt supplies during the tax period / Total turnover in the State during the tax period) = 40,000 × ₹ 2,00,000/62,00,000 - (rounded off) = 1,290 (rounded off)