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Itc claiming by contractor

19 December 2021

sir
can a contractor claim gst other than the gst on contract works. example say i'm a contractor and i bought one refrigerator for personal use. can i claim itc on that which is not part of the work contract?

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 19 December 2021

NO. ITC AVAILABLE ONLY AGAINST THE OUTWARD SUPPLY, OR FOR THE FIXTURES USED IN COURSE OF BUSINESS.

Mebawansuk Nongkynrih (162 Points)
Replied 19 December 2021

Sir what if one already claimed by mistake the itc as mentioned above question

prasad Nilugal ( GST Practitioner & Accounts ) (14167 Points)
Replied 19 December 2021

You have reverse input tax credit taken earlier , Interest applicable on reversal .

Rajendra Prasad (Employee Private) (1824 Points)
Replied 20 December 2021

If the Asset used for personal purpose, it is better to reverse the ITC along with applicable Interest. Else it has been used in your Office for staff and others, then you can claim ITC. But it will be treated as Common Input Credit and if any exempted turnover is there proportionately ITC on Asset has to be reversed.

Mebawansuk Nongkynrih (162 Points)
Replied 20 December 2021

Sir
can we reverse itc which are already claimed 6 months earlier.

Rajendra Prasad (Employee Private) (1824 Points)
Replied 20 December 2021

If ITC pertains to current financial year 2021-22 reverse the ITC through GSTR 3B along with interest.
If ITC pertains to previous year reverse ITC through DRC-03 along with Interest.