Regarding Confusion in ITC.

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This discussion addresses the confusion surrounding claiming Input Tax Credit (ITC) for stationery and telephone expenses when a client primarily earns rent income under GST. Experts confirm that ITC can be claimed for expenses directly incurred to earn rental income, provided proper documentation exists and conditions under Section 16 are met. However, claiming ITC for expenses not related to earning rental income or claiming in full without proper allocation is incorrect and may require reversal of the credit.

jignesh sitapara

jignesh sitapara (Querist)

07 July 2025 Dear Experts
My client has only RENT INCOME under GST. Now, They are taken some ITC against stationery expenses and BSNL telephone expense. It's correct ??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

07 July 2025 Yes, it can be claimed with proper justification i.e documentary evidences.

jignesh sitapara

jignesh sitapara (Querist)

09 July 2025 Sir, can you explain in deeply, Because some colleague are to terrified me. And all fulfill condition u/s 16. So, Sir I request you to please help me. I am very stress about this matter.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

09 July 2025 Any expense incurred for earning the rental income, be it for stationery or telephonic charges, you can claim. But you cannot claim it in lumpsum. What you have been told is correct if you are claiming these expenses in total, i.e. even if not incurred for earning the income.

jignesh sitapara

jignesh sitapara (Querist)

10 July 2025 Sir, what to do if I have taken full credit as per mention expenses invoices ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 July 2025 Reverse it as earliest.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 September 2025 Good luck...

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