Laboratory Material
This query is : Resolved
Rajkumar Gutti
(Querist)
18 November 2024
We are set up a laboratory to test our imported product and sale it.
Our some product are taxable and some are non taxable.
We purchasing lab material for lab purpose & debited to profit and loss account. We can not take any consideration from our customers.
Can we take input credit on lab material.
Our some product are taxable and some are non taxable.
We purchasing lab material for lab purpose & debited to profit and loss account. We can not take any consideration from our customers.
Can we take input credit on lab material.
Dhirajlal Rambhia
(Expert)
18 November 2024
1. Yes, you can generally claim Input Tax Credit (ITC) on lab materials purchased for testing purposes, even if you don't charge your customers for the testing services.
2. Since the lab materials are used for testing imported products, which are later sold, you can claim ITC on the taxable lab materials.
3. For non-taxable products, you cannot claim ITC on lab materials used exclusively for testing those products.
4. If lab materials are used for both taxable and non-taxable products, you need to maintain records to identify the portion used for taxable supplies and claim ITC accordingly.
2. Since the lab materials are used for testing imported products, which are later sold, you can claim ITC on the taxable lab materials.
3. For non-taxable products, you cannot claim ITC on lab materials used exclusively for testing those products.
4. If lab materials are used for both taxable and non-taxable products, you need to maintain records to identify the portion used for taxable supplies and claim ITC accordingly.
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