ITC on Indirect Expenses

can a business claim itc on tax paid on indirect business expenses?
Replies (4)
Quick Summary
Businesses can claim Input Tax Credit (ITC) on indirect expenses, provided these expenses are incurred in furtherance of business. Crucially, all conditions under Section 16(2) of the CGST Act must be met, and the expenses must not fall under the blocked credits listed in Section 17(5). Additionally, the ITC must be reflected in your GSTR2B, and you cannot claim ITC on exempt supplies. If these criteria are satisfied and the expense isn't blocked, ITC is generally claimable.

If it is in furtherence of business then you can claim itc

In addition to above,
1) You have to fulfill all the conditions in section 16(2) of the CGST act

2) expenses should not be in blocked credit under section 17(5)of the CGST act .

3) ITC should reflect in your GSTR2B .

4) Also Can not ITC if exempt supply

If expenses are not blocked under Sec 17(5) and business doesn't deals in free goods, then you can claim ITC.
If it is not reflected in gstr 2A ,not allowed ITC claim.If it reflected in gstr 2A,u can claim ITC. Which expensed item add with value of goods and which shows in the profit and loss account as expenses paid.

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