What to do with unutilised ITC?

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154 Points Posted on 29 November 2022
A taxpayer has unutilised ITC in his credit ledger. This is because he bought explosives with B2B invoices, but used the explosives for personal use. What shall he do with the unutilised ITC?
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On 29 November 2022 at 13:21 Report
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Quick Summary
If you have unutilised Input Tax Credit (ITC) because goods like explosives were used for personal purposes, you cannot claim ITC on them as per Section 17. This is considered blocked credit. The correct procedure is to reverse the ITC that was initially taken on these items.

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Student
1174 Points Posted on 29 November 2022

If a good is used for personal purpose no ITC shall be  taken on the same as per Section 17. It's a  blocked credit

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On 29 November 2022 at 13:31
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154 Points Posted on 29 November 2022

Ok. Then, who will block the credit so that the ITC is not utilised?

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On 29 November 2022 at 13:42
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Student
1174 Points Posted on 29 November 2022

Hi, You shouldn't have taken the credit on goods used for personal purpose. You need to reverse the ITC taken.

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On 29 November 2022 at 13:52

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