Input tax credit

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This query is : Resolved

MATHI (Querist)

11 August 2017 Sir,

Our is a Purchase and sale company. We are also Implementing Govt. schemes like conducting exhibitions and setting infrastructures using govt fund received as grant. This Govt. scheme fund expenses are accounted separately and will not reflect in the books of accounts (purchase & sale ) of our organisation. Both are audited separately and Govt. scheme expenses will not reflect in the Profit and loss of our organisation.

Can we claim input tax credit for GST paid on the expenses of Govt. scheme fund to set off the GST collected on the sale of products by our organisation.

Thanks

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)

11 August 2017 Input Tax Credit can be taken only if used for the furtherance of business. Since you have used the inputs for welfare scheme you cannot claim you cannot claim ITC for business.

VK

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 August 2017 You can't claim input tax credit for the taxes paid on the above expenses to set off of GST collected on sale of your regular products.

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