ITC ON FURNITURE

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This query is : Resolved

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This discussion clarifies the eligibility for Input Tax Credit (ITC) on furniture used in a hospital and medical shop that are part of the same Trust. While GST applies to the medical shop, claiming full ITC on capital goods used for both exempt (hospital) and taxable (medical shop) supplies is generally not permitted. ITC can be claimed proportionally for the taxable supplies of the medical shop, following GST Rules 42 and 43.

Raghavendrarao Wulligundam

Raghavendrarao Wulligundam (Querist)
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13 December 2023 Ours is a Trust that runs both Hospital and Medical Shop. GST is applicable in Medical shop. Can we claim Input Tax credit on furniture used for medical shop and hospital?

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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13 December 2023 Pratically Department won't allow you full ITC because Capital Goods will be used in the Same Premises from where Exempt and Taxable Supplies are being Made.

You can claim ITC as per Rule 42 & 43 .