GST on Mutual Fund

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This query is : Resolved

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A software consultancy is asking if they can claim Goods and Services Tax (GST) paid on mutual fund investments as input tax. The general consensus is that this is not claimable as input tax as it's for investment purposes and not directly related to the company's output supplies. However, the GST paid on mutual funds might be considered a deductible expense under the Income Tax Act if the income is declared under the head 'Profits and Gains from Business or Profession' (PGBP).

DEBASISH BODHAK

DEBASISH BODHAK (Querist)
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26 May 2022 A Software consultancy Pvt Ltd. Company - Invested money in Mutual Fund. Can it claim GST paid on Mutual Fund purchased as input GST?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 May 2022 As per my view ITC can not be claimed as GST paid is not related to output supply of company and only for investment purpose.

DEBASISH BODHAK

DEBASISH BODHAK (Querist)
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27 May 2022 Thank you for your reply. One more question, whether Input GST on MF purchased is deductible expenses under Income Tax Act? Is it a Profit and Loss Item?