ITC on Indirect Expenses

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.