This discussion explores whether a proprietor registered for GST can claim Input Tax Credit (ITC) on a lump sum invoice covering both GST and Income Tax Return services for themselves and their family. The key issue is the inability to bifurcate the charges. The general advice is that ITC can be claimed on GST charged for output services, provided it's not specifically blocked by law, regardless of the invoice's lump-sum nature.
18 June 2025
Dear Members, If a person is registered in GST as proprietor for earning rental income, we as third party have charged invoice for him (Expense) in lumpsum for all GST services & Income Tax Return services provided for him and his family, can we claim ITC credit on the same in GST registration of proprietorship? Since, we could not bifurcate the invoice into which charges are for GST of the proprietor and others.