Society sells e-stamp on which GST is exempted. Can Society take ITC on purchase of papers ? These papers are used to take print of e-stamps. This doubt arise because ITC is not available if it is used for supply of exempted services. However, society pays GST on commission what it earns selling of e-stamps. 

Section 17 of CGST Act 2017

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(2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies.

It can take on proportionate basis as per rule 42 of CGST Rules 2017 . Manner of determination of input tax credit in respect of inputs or input services and reversal thereof [input tax credit in respect of inputs or input services, being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies ]

Related Topic on GST