ITC without incurring the expense

Yes it's showing in 2B so we can claim it now.

But if we don't pay the expense then we're supposed to reverse the itc. At least that's my understanding.

Bank people agree that the rule, but they're saying there is an exception for gst charged by banks. I find that hard to believe

Thanks all. As is expected,  most people's opinion is that we cannot claim ITC.

My thinking was the same because the GST rules are clear: no ITC without corresponding expense.

Even if we claim the credit now based on 2B, there is a high possibility the auditors will disallow it. And whenever th GST scrutiny happens, they can also disallow it and claim repayment plus high interest.

So we are not taking the credit. And ask the Bank to return us the GST amount or provide us the reference for the section that they are saying gives exemption to bank charges GST.

Let's see what happens.

Originally posted by : sabyasachi mukherjee
	There are certain other parameters to be fulfilled.

Such as what?

It seems you know, so please enlighten!