📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    In GST, the credit of tax paid on the input service used

    by more than one supplier:
    A is distributed equally among all the suppliers Correct Answer Incorrect Answer
    B cannot be distributed Correct Answer Incorrect Answer
    C is distributed to one supplier only Correct Answer Incorrect Answer
    D is distributed among the suppliers who used such input service on a pro rata basis of turnover in such a state Correct Answer Incorrect Answer

    Solution

    The correct answer is is distributed among the suppliers who used such input service on a pro rata basis of turnover in such a state. Under the GST law, the credit of tax paid on the input service used by more than one supplier is distributed among the suppliers who used such input service on a pro rata basis of turnover in such a state. This means that the amount of credit that each supplier can claim is calculated by dividing the total amount of credit by the total turnover of all the suppliers who used the input service.

    Practice Next
    More Accounts Questions
    ask-question