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ITC on packing materials

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Indresh Kumar

6 Points Posted on 07 December 2020

Dear Sir/ Ma'am

Is GST ITC available on paking materials ? Jus like Carogatted boxes , Plastic Bags etc.

Replies (5)

Quick Summary

Yes, you can generally claim Goods and Services Tax (GST) Input Tax Credit (ITC) on packing materials such as corrugated boxes and plastic bags, provided they are used in the course or furtherance of your business. The key condition is that this credit must not be blocked under Section 17(5) of the CGST Act 2017. Ensure all four conditions for claiming ITC under Section 16(2) are met before making the claim.

CA Saloni

Manager-Accounts & GST Consultant

5124 Points Posted on 07 December 2020

Yes sir If the credit is not blocked u/s 17(5) it will bw allowed.

JATINDER KUMAR

Accountant

3662 Points Posted on 07 December 2020

No restrictions

You can claim ITC if business use

Shivam RC

Student

23693 Points Posted on 07 December 2020

Yes you can claim ITC on Packing Materials used in the course of business...

As per the Provision of Section 16(1) of the CGST Act 2017, ITC on Inputs, Input Services and Capital Goods used in the course of or furtherance of business can be claimed provided it is not BLOCKED U/s 17(5) of the CGST Act 2017.

Note that all the FOUR CONDITIONS as laid down U/s 16(2) of the CGST Act 2017 for claiming ITC has been satisfied before claiming it.