LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

ITC on Bank Charges

15 October 2019

We have taken Bank Guarantee from SBI. Bank collected charges with GST and uploaded the same to GST portal in FY 18-19. Please advise can we take credit.
Thanks.

Reply
Follow
Share

6 Replies

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 15 October 2019

Yes you can claim ITC

G Venu Prasad (GM) (78 Points)
Replied 15 October 2019

To, Sri Pankaj Rawar, Thanks

pavan kalyan (student) (4 Points)
Replied 15 October 2019

ITC can be availed on the same, you can get debit advise from bank which is similar to tax invoice ( Since holding a tax invoice is must for claiming ITC)

Shivam RC (Student) (23683 Points)
Replied 15 October 2019

Yes you can claim ITC provided that the loan/Bank Guarantee is utilised in the course of business.

GST ITC on all types of expenses/goods/services "used in the course or furtherance of business" can be claimed in accordance with the Provision of Section 16(1) of the CGST Act 2017.

1 Like

subhagan sreerangam (7039 Points)
Replied 17 October 2019

The provision of Section 16(1) of the CGST Act 2017 revealed that GST ITC on all types of Expenses,Goods, Services are used in the Course or furtherance of business can be claimed.

DCCTAUDIT1 HUBLI (2 Points)
Replied 21 June 2023

GST ITC on all types of expenses/goods/services "used in the course or furtherance of business" can be claimed in accordance with the Provision of Section 16(1) of the CGST Act 2017. Yes, I agree with this.

But, if a tax payer obtains Bank Guarantee to produce before the GST authority to postpone recovery of his dues of which he has questioned the same before appellate authority? Providing the BG to postpone government dues is coming under the purview of "Furtherance of Business"?