House keeping and security services ITC can claim

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Businesses providing scientific R&D services in agriculture can claim Input Tax Credit (ITC) on GST paid for housekeeping and security services. This is permissible if your business's output supplies are taxable and these services are essential for your operations. The services must be used for the furtherance of your business, such as maintaining labs and securing valuable equipment, to be eligible for ITC.

Srimannarayana

Srimannarayana (Querist)

06 January 2025 As we provide scientific research and development services in Agriculture we paid GST on house keeping and security services can we claim ITC on paid GST on such services

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

06 January 2025 Yes, provided your output supplies are taxable, and the input services are mandatory for your output services.

Srimannarayana

Srimannarayana (Querist)

06 January 2025 Sir house keeping services will clean the office,lab rooms and equipment, we have crores value of lab equipment, security will secure them. How can we justify furtherance of business to avail ITC

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

06 January 2025 Yes, it is generally required in such field, no need to justify it, you can claim ITC over it. The intention was that if used for any other purpose than the business, ITC cannot be claimed.

Srimannarayana

Srimannarayana (Querist)

06 January 2025 Thanks for your explanation sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

06 January 2025 You are welcome.

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