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GST ITC claim on Labour Supply

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DEBASHIS Maji

33 Points Posted on 08 October 2023

Sir,

I am used to supply labourers in various registered company and raised tax invoice with gst and file gst return regularly. Now my question is can I take input tax credit on car insurance purchased in the name of my firm, and also for item which I purchased in my firm name, please sir give reply

Replies (5)

Quick Summary

This discussion clarifies GST Input Tax Credit (ITC) for businesses supplying labour. While ITC is generally claimable on GST paid, car insurance purchased in the firm's name is specifically ineligible for credit under Section 17(5)(a)(ab) of the CGST Act. Purchases made in the firm's name are permissible if the firm has a separate PAN.

Suresh Jain

22 Points Posted on 08 October 2023

You are eligible to take ITC on the GST paid by you subject to provisions of section 16 and 17 etc of CGST Act. No credit is available in your case on Car insurance.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 08 October 2023

No... Input Tax of Car insurance is not eligible to You...

The said ITC eligible Only to the related business activities...

So, Better to avoid this ITC and show the same in ineligible ITC at the time of filing GSTR 3B return.