ITC Claim on GST for puchase of Mobile phone and smart watch

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This query is : Resolved

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A sole proprietor running a travel agency purchased a mobile phone and smartwatch under their firm's GSTIN. They are seeking clarification on whether they can claim Input Tax Credit (ITC) for these items for the first quarter of the financial year. While ITC is generally claimable if the goods are used for business purposes, it can be difficult to prove exclusive business use for personal devices like mobile phones and smartwatches, making it advisable not to claim ITC on them.

Rahul Sharma

Rahul Sharma (Querist)

27 May 2022 Namasttee Sir,
Sir, I am Sole propritor of Travels Agency purchase mobile phone and smart watch in name of my firm with GSTIN. Sir can i claim for ITC of mobile no and samrt phone for 1 Qtr (April 22 to June 22).. Sir please guide me in this matter

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

27 May 2022 Only if same is used for business purpose

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

06 June 2022 As long as the mobile is used in the course of and in furtherance of business which may be difficult to prove since mobile is one thing which can be used for personal calls also and it becomes difficult to differentiate the ITC in that case so it is advisable not to claim ITC on smart phone and smart watch.

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