ITC UNDER GST

[RameshBabu Kari]

Q1. Purchase of lights,wires,fans,furniture an AC for the use in the corporate office and can we claim ITC on those purchases which are using in the office ?

Q2. Purchase of gym equipment for the employees in the office gym, can we claim itc on those purchase ?

[Rajagopalan Ranganathan]

Sir,

According to Section 16 91) of CGST Act, 2017 "Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person."

Therefore you are eligible to take ITC in respect of tax paid on lights,wires,fans,furniture an AC for the use in the corporate office since the office is used in the course or furtherance of your business.

According to Section 17 (5) (g) of CGST Act, 2017 "goods or services or both used for personal consumption." Since gym equipment for the employees in the office gym is intended to be used for personal consumption of your employees ITC of tax paid in respect of such equipment is not available.

[KASTURI SETHI]

I support the views of Sh.Ranganathan Sir.

[Himansu Sekhar]

Yes I also support the views of the experts.

1. ITC available

2. Not eligible

AI Summary

Input tax credit for office assets: business use items qualify, personal use items like employee gym equipment do not. Entitlement to input tax credit exists for goods and services used in the course or furtherance of business, so items such as lights, wires, fans, furniture and air conditioning used in a corporate office qualify for ITC subject to prescribed conditions and electronic credit ledger rules; goods or services used for personal consumption, exemplified by gym equipment for employees, are excluded and ITC is not available.