ITC showing in GST portal against consumable goods

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This query is : Resolved

Quick Summary

If Input Tax Credit (ITC) is appearing on your GST portal for goods purchased for personal house construction, don't worry. This happens because the supplier incorrectly listed your GST number. However, according to Section 17(5) of the CGST Act 2017, this is considered 'blocked credit' and cannot be claimed. The best course of action is to leave it unclaimed.

iswar baruah

iswar baruah (Querist)

07 January 2022 My friend purchased goods for building his own house and provided his GST no by mistake. Now ITC is reflecting in his GST portal . what to do

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 January 2022 No ITC can be claimed on it, leve it as unclaimed.

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CA Puja Sharma

CA Puja Sharma (Expert)

07 January 2022 The ITC will reflect in GSTR 2B because the supplier has mentioned the GSTIN of your friend against his invoice while filing GSTR 1.
Bu u/s 17(5) of the cGST Act 2017, such credit is blocked credit and ITC won't be allowed.

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