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

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.