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Input Tax Credit

Fanny7 (Own) (27 Points)

26 July 2020

Hi,

I am buying steel racks for my business warehouse so can i claim itc for that ?

Also i want to buy scooty which will be also used for my business purpose along with my personal work so will i be able to claim its itc too ?

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7 Replies

Ramesh Bonda (8 Points)
Replied 26 July 2020

Sir, what is the purpose of use steel racks? Further scooty u/s 17(5) negative list goods not claimed itc

Vijayprakash P (1313 Points)
Replied 26 July 2020

ITC of the taxes paid is blocked in following cases. 1.Goods and services or both used for personal consumption. 2.Services of General Insurance, servicing, Repair and maintenance as they relate to motor vehicles.

Shivam RC (Student) (23683 Points)
Replied 26 July 2020

For Steel Racks you can claim ITC since it is being used in the course of or furtherance of business ( SECTION 16(1) of the CGST Act 2017 ).

As far as the Motor Vehicle ( Scooty ) is concerned, you cannot claim ITC as it is specifically BLOCKED under Section 17(5) clause (a) of the CGST Act 2017.

Regards,
Shivam RC.

2 Like

Maryam Hasan Meem (Student) (448 Points)
Replied 27 July 2020

Yes, I agree with SHIVAM RC as mentioned above.

Fanny7 (Own) (27 Points)
Replied 28 July 2020

Means if i purchase racks, computer, laptop, hard disk and have sole proprietor firm gst no. then i can claim itc ? Offcourse these things will be used in my personal needs too so if i will claim itc on them then will i do anything wrong because these things will be also use in my business location so i am confused.

Further pl. see this article here it says i can claim itc on scooty - https://www.caclubindia.com/experts/our-own-goods-vehicle-used-for-business-purpose-2743169.asp

Fanny7 (Own) (27 Points)
Replied 31 July 2020

Please experts respond because i found one article in which experts confirmed that itc can claim on scooty too if purchasing for the business purpose like taking goods to business location or using scooty for the business purpose to run inbetween warehouse to warehouse sooffcourse i will also use the newly scooty for fulfilling this types of business purposes. So can i claim itc or not ?

https://www.caclubindia.com/experts/our-own-goods-vehicle-used-for-business-purpose-2743169.asp