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ITC CLAIM OF BEAUTY PARLOUR

10 February 2021

Can a Beauty Parlour Service Provider with Turnover of less than 20 lakhs Claim on ITC?.Is it Possible to take the tax paid on purchase of Soap,Blade,Cream,Lotion,Paste,Towel etc for Service as ITC and Setoff the Output Tax Liability.

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5 Replies

Analytic Business Consulting (150 Points)
Replied 10 February 2021

As per my views you could claim the ITC on the expenses met in the furtherance of business unless it is expressly mentioned in blocked credit section 17(5).

Since, the turnover is below 20 Lakh, the registration will be under voluntary registration category. While claiming ITC you should keep in mind that the GST will be applicable for the service charges charged by the beauty parlour also.

I hope that this would help you.

robin garg (ipcc) (275 Points)
Replied 10 February 2021

Yes you can avail the ITC as you are registered person and input goods and services are directly related to outward supplies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 11 February 2021

Yes you can take ITC

Shivam RC (Student) (23683 Points)
Replied 11 February 2021

Yes, the Beauty Parlour Service Provider can claim ITC on its Input, Input Services and Capital Goods since it is being used in the course of or furtherance of business.

As per the Provision of Section 16(1) of the CGST Act 2017, ITC on Inputs, Input Services and Capital Goods which are being used or intended to be used in the course of or furtherance of business can be claimed by the registered person. Just ensure that all the FOUR CONDITIONS as laid down U/s 16(2) of the CGST Act 2017 has been satisfied before claiming ITC.