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Claiming ITC on new Shampoo /Watch / cupboard purchase

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265 Points Posted on 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*

Replies (3)

Quick Summary

This discussion explores whether a sole proprietor in the stock brokerage commission business can claim Input Tax Credit (ITC) on items purchased from Amazon India, such as shampoo, watches, or cupboards. While ITC is generally claimable for business-advancing purchases, the key issue is whether items used for personal consumption, even if bought through a business account, are eligible. The consensus is that items for personal use are blocked credit under Section 17(5)(g) of the CGST Act and must be reversed, whereas items used for business promotion might be eligible.

Anshuman Basu

account -GST

1181 Points Posted on 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

Shivam RC

Student

7666 Points Posted on 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.

Nidhi

Chief Accountant

1673 Points Posted on 11 October 2020

I hereby want to report the Fake Likes fraud done by above “Shivam RC” since last many years.

Read more at: https://www.caclubindia.com/forum/fake-likes-fraud-by-quot-shivam-rc-quot--558215.asp