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cupboard purchase

pr br (319 Points)

10 October 2020

I hold a business account on amazon India website and I am into stock brokerage commission business as sole proprietor individual . I do purchase lot of things from amazon India website for business and personal . ITC already reflecting on my GSTR-2A .

Can I take ITC for the above purchases?

I understand one can take ITC for purchase used for the advancement of the business. here I am a service provider,As a commission agent, I am giving service to the client so products used by me eligible for ITC or not ?

I am not trading /re-selling these cosmatic porducts or watches , all used for personal use only*

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3 Replies

Anshuman Basu (account -GST) (1547 Points)
Replied 10 October 2020

If this product are given to your clients as a gift then are not take ITC. it is block credit. but it is use for business promotion then you are liable to take ITC

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Shivam RC (Student) (23683 Points)
Replied 11 October 2020

As per the Provision of Section 17(5) clause (g) of the CGST Act 2017, ITC on Goods or Services used for "PERSONAL CONSUMPTION" is specifically BLOCKED.

Since you are using these cosmetics products and watches for personal consumption, so ITC on these products is ineligible. You have to reverse it.

Regards,
Shivam RC.