Some of the new generation banks raise invoice for bank charges in the following format.
Bank Charges | 1000 |
Add : GST | 180 |
Total | 1180 |
Less : Discount | 1000 |
Net Payable | 180 |
The customer pays Rs.180 only to bank and book it as ITC. Is ITC in such situation eligible.
I invite experts opinion on above.
Debate on Input Tax Credit eligibility for bank charges with waived fees; concerns over GST payment and filing practices. A discussion forum addresses a query about the eligibility of Input Tax Credit (ITC) on bank charges invoices issued by some banks. The invoices show a total charge of Rs. 1000, with GST of Rs. 180, discounted to a net payable of Rs. 180. Participants question the legitimacy of claiming ITC under such circumstances, as the actual bank charges are waived. Opinions vary, with some suggesting ITC is valid if GST is paid to the government, while others highlight potential anomalies and suggest verifying the bank's GST filing practices. (AI Summary)
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