I have a tent house business that comes under service and if i buying some chairs and others material for my tent house so can i claim ITC on this items . please response..
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Quick Summary
If you run a tent house business, you can generally claim Input Tax Credit (ITC) on capital goods like chairs and other materials purchased for your business. This is permissible under Section 16(1) of the CGST Act 2017, provided the goods are used in the course of business. Ensure you meet the four conditions for claiming ITC, including having a tax invoice and the supplier having paid taxes. Note that you cannot claim depreciation on the tax component of capital goods if you've claimed full ITC.
Yes you can claim Input Tax Credit ( ITC ) on materials purchased for your Tent House Business since they are being used in the course of your business.
As per the Provision of Section 16(1) of the CGST Act 2017, Input Tax Credit ( ITC ) on Inputs, Input Services and Capital Goods which are used in the course or furtherance of business can be claimed. Hence you can claim ITC on Capital Goods as well.
Also ensure that all the Four Conditions as prescribed under Section 16(2) of the CGST Act 2017 for claiming ITC are satisfied i.e. :
1). Possession of a Tax Invoice. 2). Received the Goods or Services. 3). Supplier must have paid the Taxes. 4). Return u/s 39 should be filed.
Also note that you cannot claim Depreciation on the Tax Component of the Capital Goods if you have claimed full ITC by virtue of Section 16(3) of the CGST Act 2017.
Also refer Section 17(5) of the CGST Act 2017 to know regarding BLOCK CREDIT.