Claiming Input Tax Credit (ITC) on Purchases

This query is : Resolved

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This discussion addresses claiming Input Tax Credit (ITC) on purchases made by a business. Specifically, it covers whether ITC can be claimed on an air conditioner and TV purchased under the firm's name but intended for personal use at home. The advice clarifies that ITC on goods used for personal purposes cannot be claimed and must be reversed. It also touches upon the process of reporting eligible and ineligible ITC in GSTR-3B, highlighting the importance of cross-referencing with GSTR-2A.

Dharam Pal

Dharam Pal (Querist)
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05 August 2022 Sir
My brother is a proprietor of the Firm(Shop)(Registered in GST) and purchase on one Air Condition for the use of shop and one Air Condition AND TV for use of House . The seller issued bill in the name of Firm ( Shop). Please advise he can claim Input Tax on purchase of above Items.
D.P.Kapoor
9810600330

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 August 2022 He should revert the ITC on the goods used for personal purpose.

Dharam Pal

Dharam Pal (Querist)
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09 August 2022 Sir
Please advise the claim full amount of ITC paid for purchase of goods for personnel use and goods use for office.
Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 August 2022 All regular taxpayers must report the amount of input tax credit(ITC) in their monthly GST returns of Form GSTR-3B. The table 4 requires the summary figure of eligible ITC, Ineligible ITC and ITC reversed during the tax period.
A taxpayer can claim ITC on a provisional basis in the GSTR-3B to an extent of 20% of the eligible ITC reported by suppliers in the auto-generated GSTR-2A return. Hence, a taxpayer should cross-check the GSTR-2A figure before proceeding to file GSTR-3B.

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