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GST claim by a company

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lucky

MBA

49 Points Posted on 01 August 2020

I am an employee of a private company. Company is reimbursing the expense on buying furniture based on invoice submission which should be GST compliant.

Question is can the company claim input tax credit based on the invoice submitted by the employee which will be on employee's name?

Replies (7)

Quick Summary

This discussion clarifies whether a company can claim GST Input Tax Credit (ITC) when reimbursing employees for furniture purchases. The consensus is that a company can only claim ITC if the purchase invoice is in the company's name and includes the company's GSTIN. If the invoice is made out to the employee, the company cannot claim the credit, as the recipient's GSTIN is missing.

shyam

Executive

74 Points Posted on 01 August 2020

What about GSTIN on invoice

lucky

MBA

49 Points Posted on 01 August 2020

Didn't get your question.

Vendor from whom employee will purchase the furniture will have to mention his GST Reg details on invoice. That's what I meant by GST compliant invoice.

Abhishek Selvam O

374 Points Posted on 01 August 2020

If bill raised on company then itc can be claimed by company but if bill is raised on u r name then itc cannot be claimed by the company.

Pawan Vemula

284 Points Posted on 01 August 2020

If Furniture Purchased For Company Business Purpose Then Itc Allowed Other Wise Not Allowed

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 02 August 2020

If the Company is reimbursing the expense on buying furniture based on invoice submission which should be GST compliant by employees, than In this case Company can take ITC only when Invoice of purchase of furniture ect. is on name of company and GSTIN of company is mentioned on purchase invoice.
If purchase invoice is on name of employee, than company can not take ITC.

Shivam RC

Student

23693 Points Posted on 02 August 2020

The Company cannot claim ITC because of the following reason :

1). The Invoice is in Employee's Name and not Company.

2). The GSTIN of the Recipient ( Company ) is not mentioned ( which is one of the vital condition for claiming ITC ).