ITC under GST

[NANDINI SARKAR]

Dear Team,

At the outset, I would like to share our company details and activities.

We operates on a Pan-India basis, in over 90 cities, in the areas of statutory compliance, compliance audit, PF, ESI and benefits management, payroll management and POSH training and compliance.

The above mentioned areas are the core activities of our company. Parallelly, we are investing a part of business funds (which is generating from the main services) in shares and we are paying lots of share trading charges. The GST amount pertaining to the share trading charges are reflecting in our GSTR-2B.

Can we claim ITC of GST amount which are generating from the share trading and reflecting in our GSTR-2A & 2B.

Please share your expertise with sections and provisions.

AI Summary

Company Cannot Claim ITC on GST for Share Trading; Must Reverse Credits for Shared Business Expenses A company operating in statutory compliance and related services across India is investing in share trading, incurring GST charges reflected in their GSTR-2B. They inquired about claiming Input Tax Credit (ITC) for these GST amounts. The response clarified that since GST is not applicable to share trading, which is considered an exempt supply, ITC cannot be claimed on these charges. Additionally, the company must reverse GST credits related to common expenses shared between their regular business and trading activities, such as telephone, internet, rental, and security expenses.