<p style="text-align:justify"><span style="font-size:14px"><span style="color:#34495e">The provisions relating to deemed credit are contained in the proviso to section 140(3) of the CGST Act, 2017 and rule 117 (4) of the CGST Rules, 2017. ITC at the rate of 60% is allowed where the Central tax rate on goods is 9% or more; it is allowed at the rate of 40% in other cases. It is allowed only after the payment of applicable tax. It can be taken in the first six tax periods only.</span></span></p>

<p style="text-align:justify"><br />
<span style="font-size:14px"><span style="color:#34495e">Deemed credit is allowed only to traders and not to manufacturers.</span></span></p>