GST CLAIMED ON BANK SERVICE

[PRADEEP SHUKLA]

Dear Sir/Madam,

I would like to know that can we avail ITC on Bank Charges as per charged by bank from Current Account of company ???

Please help me out in this regards

Pradeep Shukla

[Atul Rathod]

Yes you can claim the ITC.

[KASTURI SETHI]

There is no restriction for availing ITC on GST paid on bank charges paid from current account provided you fulfill normal conditions laid down in Sections 16 & 17 of CGST Act, 2017.

[Ganeshan Kalyani]

Bank charges incurred is in Course and furtherance of the business and the same is not in the blocked credit u/a 17(5). Hence, you can take credit provided your outward supply is taxable. It your outward supply is partly exempt and partly taxable then only proportionate credit is allowed.

[Adarsh Sharma]

You can avail the ITC on bank charges, whereas u need to obtain the valid invoice from the bank as prescribed under in para 2 of Circular No. 90/09/2019-GST dated 18.02.19

[Ganeshan Kalyani]

Yes, having invoice copy on record is also essential to take credit. At the same time the credit should also get populated in your GSTR 2A.

[YAGAY andSUN]

Your GSTIN should be mentioned on the Bank Statements, Debit Advices as B2B.

AI Summary

Input tax credit on bank charges is claimable if taxable outward supplies exist and invoice and record conditions are met. Availability of input tax credit on bank service charges requires that the charges be incurred in the course of business and that outward supplies be taxable; if supplies are partly exempt, only proportionate credit is allowed. Claimants must possess valid tax invoices or prescribed bank debit advices, ensure GSTIN details on banking documents where applicable, and reconcile the credit with inward supply records as reflected in return schedules.