ITC ON STATIONERY

[Guest]

Dear Experts,

My client is a manufacturer , he purchased some stationery for office use such like paper A-4 ,Letter head, calculator, writing pad, pens, highlighter pen, etc.

My query is that whether he is eligible for ITC on stationery items or not.

Thanks in advance

[Nash Industries I Pvt Ltd]

ITC eligible.

Used in the course of furtherance of business and not in the negative list.

[Chhatra Jain]

I agree with Ramaswamyji. Any article or thing purchased for its use in business ITC is available.on it.

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[Ganeshan Kalyani]

Input tax credit is eligible on stationery if it used in course or furtherance of business and the final product is taxable. Further, if the same is incurred at Head office level then it has to be distributed to respective units on proportionate basis.

[subramanian vijayakumar]

Experts if the stationary are purchased from unregistered dealers whether RCM HAS TO BE PAID AND ITC CAN BE AVAILED PL CLARIFY

[Nash Industries I Pvt Ltd]

Upto 12.10.2017, purchase above ₹ 5000/- from URD attracted GST on RCM and credit allowed.

However, wef 13.10.2017 (date of notification), upto 31.03.2018, RCM is not applicable on URD purchases.

Regards

S.Ramaswamy

[Ganeshan Kalyani]

Yes, purchase from an unregistered dealer is exempted from GST under RCM upto 31.03.2018.

[subramanian vijayakumar]

Thanks for the experts for the identical views

AI Summary

Input tax credit on stationery: eligible if used for business; RCM on unregistered supplier purchases suspended during transitional period. Input tax credit on stationery is available when used in the course or furtherance of business and not in the negative list; ITC may require that the final product is taxable. Stationery purchased at head office must be proportionately apportioned to units. Purchases from unregistered suppliers were earlier subject to reverse charge with credit allowed, but a later transitional notification suspended RCM applicability on such purchases for a specified interim period.