GST input credit against partly business and partly personal purpose

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Dear Friends

A  company hires the services of a packers and movers for packing, transportation and storage of luggage which consists office records furniture and some personal stuff of officers of the company. The Packer & Mover company gives a consolidated bill for Rs. 20000/-. I want to know:

1. Can the company take input credit of the full amount of GST charged in the bill or it should take only proportionate amount relating to official purpose say 50%.

2. If only a proportionate amount is allowed then can the same bill is valid to claim proportionate ITC or the bill should be split into two separate bills for personal and business use of service.

Shall appreciate to get a considered opinion of the members on this issue.

 

Thanks

PC Joshi

Replies (3)

We can also say that relocation expenses is part of the business of the company. The person is relocating to carry on the same entities business. Such expenses are also generally considered in the HR/Employee handbook of the entity. 

Therefore, entire credit can  be said to be eligible. Risk appetite of taxpayer and discretion advised. 

If not as mentioned, can consider as common credit. See rule 42(1)(j) - 5% of entire common credit may need to be reversed. This leads to more problems than solutions. 

Thankk you so much for your reply. But the purpose here is for storage of the items for a temporary period of 6-10 months.office is very small to accomodate the records and personal stuff.Can still we clai ful ITC as relocation expenses. 

The question here is about the items. Are they business items. Are they intended to be used for the purpose of business now or later? If yes, credit is eligible. 

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