Input tax credit

[neela kandan]

My friend is a MD of IT company.He wants to know whether he can avail ITC for the telephone bills paid

regards

AI Summary

Eligibility for Input Tax Credit on Telephone Bills Under GST: Business Use Crucial, Refer to Section 17 CGST Act. An individual inquired about the eligibility of claiming Input Tax Credit (ITC) on telephone bills under the Goods and Services Tax (GST) framework. The consensus among respondents is that ITC is permissible if the telephone bills are in the company's name and used for business purposes. However, if the telephone is used partially for personal use, ITC is limited to the business-related portion. The discussion highlights the importance of justifying business use, referencing Section 17 of the CGST Act, which restricts ITC for personal consumption. Establishing business use can be challenging and may require case-by-case analysis.