Q. 545 Non-Utilisation penalty: As per GIDC agreement if company is not able to complete construction of factory within specified period, they will charge additional delayed charges and due to COVID and other arrangement, our construction of factory is also delayed. The payment made is towards applicable non utilisation penalty including GST Is ITC available for GST paid on non utilisation penalty ?

Ans. No, you cannot claim ITC.

Q. 544 A trader dealing in exempted goods only and pays freight to GTA on which RCM is applicable. Whether such dealer is required to take GST registration?

Ans. Yes, you are required to take GST registration.

Q. 543 If a registered person purchases the blankets and distributes them to its employees, then whether he may claim ITC of such blankets?

Ans. No, ITC cannot be claimed.