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

AI Summary

Input Tax Credit available for office stationery if used in business; note changes in Reverse Charge Mechanism rules. A client, a manufacturer, inquired about eligibility for Input Tax Credit (ITC) on office stationery purchases under Goods and Services Tax (GST). Experts confirmed ITC is available if the stationery is used in the course of business and the final product is taxable. Purchases from unregistered dealers previously required Reverse Charge Mechanism (RCM) and allowed credit, but from October 13, 2017, to March 31, 2018, RCM is not applicable for such purchases. If incurred at the head office, costs should be proportionately distributed to respective units.