GST APPLICABILITY 31.05.2019

[SAFETAB LIFESCIENCE]

Dear Experts,

Is the GST charged in bank charges like Loan Processing charges, RTGs commission etc. are elgible for ITC claim

[Zahid Hussain]

Hi,

Its B2B transaction, u can claim input but only for business account not for saving account.

[KASTURI SETHI]

Yes eligible if transaction is in the course of taxable business.

AI Summary

Eligibility for Input Tax Credit on GST for Bank Charges Clarified: Must Be B2B and Part of Taxable Activities A query was raised regarding the eligibility of claiming Input Tax Credit (ITC) on GST charged on bank charges such as loan processing fees and RTGS commissions. Two responses were provided. The first response clarified that ITC can be claimed if the transaction is a business-to-business (B2B) transaction and is conducted through a business account, not a savings account. The second response confirmed that ITC is eligible if the transaction is part of taxable business activities.