Input Tax Credit Query

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This query is : Resolved

Quick Summary

A new business owner is asking about claiming Input Tax Credit (ITC) on purchases like air conditioners and computers for their upcoming medical and convenience shop. They've been advised that if the purchases are for the furtherance of business and the invoice is in their name with a GST number, they can utilise the credit. The claim validity extends until October of the following year, with a specific example given for a December 2020 purchase claimable with the September 2021 GSTR 3B, due in October 2021. It's also recommended to obtain GST registration first.

Zubz World

Zubz World (Querist)
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23 December 2020 Hi...
I am new to this GST working and need an advise on it.
Actually i am opening medical and convenience shop which would be operational in 1 or 2 months. It's on proprietorship.

So for the same if I have to purchase Ac , Computers , accessories I will pay GST on it. So can I utilize this as Input Tax Credit ??
If yes than for how much time the claim would be valid...?

My Shop Current Account is not yet opened and I will pay for purchases from my Saving Account. (Single Name)

Thanks in advance
Zubin

CA Anita Bhadra

CA Anita Bhadra (Expert)
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23 December 2020 You purchase computers etc for the furtherance of business and the invoice will be in your name and indicating your GST number - you can utilize the credit till October of next year.

For purchase in Dec 2020 - you can utilize credit with Sep 2021 GSTR 3B due in Oct 2021