REGARDING INPUT

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B.SC
202 Points Posted on 13 May 2020
I AM PARTICIPATING CHIT IN MARGADARSI OF RS 50 LAKHS IN THE NAME OF MY FIRM MURALI ENTER PRISE. I LIFTED CHIT FOR 10 LAKHS.BUT MARGADARSI HAS RAISED INVOICE FOR 10 LAKHS ALONG WITH GST 18000.INTHIS REGARDS WE HAVE TO TAKE INPUT OR NOT. IF YES ANY NOTIFICATION
THANKING YOU SIR
D.SRINIVASULU
9182071284
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On 13 May 2020 at 12:39 Report
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Quick Summary
This discussion clarifies whether input tax credit (ITC) can be claimed on GST paid for chit fund participation. The consensus is that GST is typically applicable only to the foreman's commission. If the chit fund is used for business purposes, you can claim ITC on the GST charged on this commission, though it may involve some legal considerations.

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Chartered Accountant
1147 Points Posted on 13 May 2020

Sir,

I hope GST is applicable only to the extent of foremen commission charged and not on entire amount..

Further, ITC can be availed if the funds are used in the business but may be litigative..

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On 13 May 2020 at 19:01
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GST Practitioner
55067 Points Posted on 13 May 2020
It's 12% GST on commission to Chit Fund Manager for his services .

So in your case the GST has been charged on commission portion of chit fund manager being recovered from you.

Yes you can claim ITC for the if it is used in business.
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On 13 May 2020 at 23:25

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