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Itc claimable on insuracne of stoct or shop

26 July 2020

sir/madam

I have paid to gst amount for insurance of stock and I hove paid to gat amount for insurance of shop . can I claimed that gst which paid for stock insurance /shop insurance.

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8 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 26 July 2020

Yes, You can claim input tax credit (GST) of premium paid for stock/ shop insurance policy.

annu Goyal (1102 Points)
Replied 26 July 2020

Yes, you can claim ITC

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 26 July 2020

Yes the ITC can be claimed, subject to conditions prescribed in Section 16 of CGST Act

SHIVAM KASHYAP (19 Points)
Replied 26 July 2020

Legal reference please

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 26 July 2020

Every registered person, shall be entitled to avail input tax credit if the goods and services received is used or intended to be used for business purposes subject to fulfilment of condition of section 16 and Except it's blocked as per Section 17(5)
General insurance is not blocked as per section 17(5) So, you can take credit on same.

Vijayprakash P (1313 Points)
Replied 26 July 2020

Yes, You claim ITC as per section 16 of CGST Act.

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

Yes Sir you can claim ITC on Stock Insurance as well as Shop Insurance since it is an expense which is for the furtherance of business.

LEGAL / Act REFERENCE : As per the Provision of Section 16(1) of the CGST Act 2017, INPUT TAX CREDIT ( ITC ) on Input, Input Services and Capital Goods which are used "IN THE COURSE OF OR FURTHERANCE OF BUSINESS" can be claimed subject to section 17(5) of the CGST Act 2017 [ i.e. BLOCKED CREDIT ].

Regards,
Shivam RC.

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