sec 16 (1)

[giri gattupalli]

respected sir,

one of my clint purchased 10 lakh rupees gold and obtained tax invoice during fy 2020-21.and it was included in business assets in balance sheet. plese discuss whether this input supply qulified as in the course of business supply and eligible for taking input tax credit or not please discuss

thanking you

AI Summary

Can Gold Purchases Qualify for GST Input Tax Credit? Business Use vs. Personal Consumption Explained A discussion on a forum addresses whether a client's purchase of gold worth 10 lakh rupees qualifies for input tax credit (ITC) under the Goods and Services Tax (GST). One response clarifies that ITC eligibility depends on whether the gold is used in the course of business, such as selling gold or manufacturing jewelry. If used for personal consumption, ITC is not available. Another reply references a ruling by the Maharashtra Authority for Advance Ruling, noting that ITC is not available for gold distributed to customers.