ITC on Books Purchased by Company

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CRR RR

68 Points Posted on 23 January 2025

Hi sir

A Company is purchasing books to enhance skills of employees

1. Will GST charged by the Vendor

2.If GST is Charged,Will it be eligible to get ITC

Please advise

Thanks

Replies (2)

Quick Summary

When a company purchases books to enhance employee skills, GST may or may not be charged depending on the type of book. Printed books for skill development are generally exempt from GST. However, e-books or online subscriptions may attract GST at 5% or 18%. If GST is validly charged on items used for business purposes like employee training, Input Tax Credit (ITC) can typically be claimed, provided all conditions like possessing a valid invoice from a registered dealer are met.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 24 January 2025

GST on Books Purchased for Employee Skill Enhancement

*GST Applicability* 1. *GST Charged by Vendor*: Yes, GST will be charged by the vendor on the sale of books.

2. *GST Rate*: The GST rate on books is 0% (zero-rated) for certain categories, such as: - Books, including Braille books and other books for the blind. - Newspapers, journals, and periodicals. -

Textbooks for schools and universities. For other types of books, the GST rate is 5%.

*Input Tax Credit (ITC) Eligibility* 1. *ITC Eligibility*: To be eligible for ITC, the books purchased must be used for business purposes.

2. *Business Purpose*: If the books are purchased to enhance the skills of employees, it can be considered a business purpose.

3. *Conditions for ITC*: The company must meet the following conditions to claim ITC: -

The books must be purchased from a registered dealer. -

The company must possess a tax invoice. -

The books must be used for business purposes.

In summary, GST will be charged by the vendor on the sale of books. If the books are purchased for business purposes, such as enhancing employee skills, the company may be eligible to claim ITC, provided the necessary conditions are met.

Aashok Kumar Sharma

Finance/Compliance Consultant

75675 Points Posted on 07 November 2026

Usually no GST, so no ITC question:

• Printed books, including technical, professional and skill-development books (HSN 4901), are exempt from GST (Notf 2/2017-CT(R)). Vendors shouldn't charge GST on them.

• E-books and online subscripttions: e-books are 5% (HSN 4901 as amended); online databases or courses are 18% (OIDAR/education services).

• If the vendor charged GST on printed books by mistake, ask for a corrected invoice. You can't claim ITC on tax that isn't legally due.

• Where GST is validly charged (e-books, online courses, training): ITC is available if used for the business (employee skill development is business use). It's not blocked by Sec 17(5), not a gift, and not a personal benefit.

• Accounting: books for a library are capital (furniture & books, 40% depreciation for annual publications or professional books under the IT Act, Appendix I item for books). Routine reference books are expensed as staff training.