ITC Eligibility

[Ethirajan Parthasarathy]

As per sec.16(1) of CGST Act, ITC is allowable on expenditure incurred used or intended to be used in the “course or furtherance of his business”.

My query is whether ITC on professional fee incurred in connection with buy back of shares or issue of shares by a limited company are eligible for credit.

AI Summary

Input tax credit eligibility: professional fees for share buybacks and issuances may be creditable as securities facilitation services.
ITC on professional fees for share buybacks or issuances is claimable where those fees constitute taxable services facilitating securities transactions and are used or intended to be used in the course or furtherance of business. The inclusive definition of business, which covers activities incidental or ancillary to commercial activity, supports treating buyback/issuance-related services as business expenditure eligible for input tax credit, subject to factual variation and interpretive dispute.