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ITC of GST paid on electricity, telephone etc

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P.R.KABRA

PROFESSIONAL ACCOUNTANT

79 Points Posted on 07 November 2019

Many suppliers do not claim ITC of GST paid on services like Electricity Board, Telephone companies incl. BSNL, all the BANKS on service charges etc.

Some have doubt that we have not informed them our GST tin and it is not reflected in their bill/invoices.

There is some confusion in the minds of small and medium traders etc. in this respect.

Can any body or expert provide the factual position of this aspect and guide how to claim GST paid on such items.

Replies (11)

Mohanraj J

781 Points Posted on 07 November 2019

We can claim ITC if our GSTIN mentioned in the Telephone, Mobile, EB & Bqnk Charges. Otherwise it will affect us in 2A Reconciliation

VIKAS SAINI

875 Points Posted on 07 November 2019

ITC available on such expense except electricity

Mohanraj J

781 Points Posted on 07 November 2019

In Electricity charges also having GST only for Meter reading machine Rental

Pankaj Rawat

GST Practitioner

29904 Points Posted on 08 November 2019

As per Section 16 Of CGST Act , ITC can be claim on all those inward supplies which is in course or furtherance of business.
Hence in above said expense the ITC can be claimed.

And As per Rule 36 : Credit is available to Recepient of GSTN is mentioned in the Tax Invoice (means B2b invoice is issued)

So in 2A of Recepient will be reflected only when b2b invoice is issued

VIKAS SAINI

875 Points Posted on 08 November 2019

In the electricity bill where is show GST.

P.R.KABRA

PROFESSIONAL ACCOUNTANT

79 Points Posted on 08 November 2019

Do they issue b2b invoices? Are these separate bills than regular bills? How to inform them our tin, is separate request to be made?

Pankaj Rawat

GST Practitioner

29904 Points Posted on 10 November 2019

No.... invoice format is same as prescribed in rule 46, b2b invoice is issued when the Recipient is Registered , means he is having GSTN.
and B2C Invoice is issued to Recepient who is not registered & don't have GSTN.

Note : When invoice issue to registered person but GSTn of same is not mentioned on bill, it's treated as B2C invoice & Recepient cannot claim ITC on such invoice s