Can We avail ITC on Bank Charges

[Sangeetha D]

Can We Avail input tax credit on Bank Charges. Some GST officer saying we should not avail ITC on Bank Charges. Is that Blocked Credit or any specific condition to Avail Bank Charges ITC

[mia alexandra]

To claim ITC on bank charges, ensure you have valid tax invoices from the bank, verify that the bank has paid the GST to the government, receive the banking services, and file your GST returns (GSTR-3B) timely. Accurate Spacebar clicker    documentation and timely payment of these charges are crucial for eligibility. If you have no idea what that means, don't fret – you're not alone, this isn't everyday jargon we're playing with here. Input-taxed fees mean a business or corporation cannot charge GST on fees, goods, or services, or claim GST back on their own business purchases.

[Sadanand Bulbule]

ITC on bank charges is not blocked under Section 17, but it is subject to the compliance of parameters of Section 16.

[Sangeetha D]

For Bank Charges what is a valid Invoice to Claim ITC. There a small small ITC Values on Bank Charges. how to get Invoice for that.

[Raam Srinivasan Swaminathan Kalpathi]

The bank will email you a consolidated invoice at the end of the month.  This document would suffice.

[Shilpi Jain]

Bank charges eligible to the extent it pertains to a taxable business. Also there are relaxation provisions for issuance of invoice by banks. Any document issued by them can be good enough to take credit. bank statement is also fine backed up with entry in your GSTR-2A/2B.

[KASTURI SETHI]

Board's circular No.183 of 2022 can be helpful in this context.

AI Summary

Eligibility of Input Tax Credit on Bank Charges Under GST: Compliance with Sections 16 and 17 Required. A query was raised about the eligibility of claiming Input Tax Credit (ITC) on bank charges under the Goods and Services Tax (GST) regime. Respondents clarified that ITC on bank charges is not blocked under Section 17 but requires compliance with Section 16. To claim ITC, valid tax invoices from the bank are necessary, and the bank must have paid GST to the government. A consolidated invoice from the bank or bank statements can serve as valid documentation. Additionally, Board's Circular No.183 of 2022 may provide further guidance on this matter.