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TMI BlogInput tax creditX X X X Extracts X X X X X X X X Extracts X X X X ..... Input tax credit X X X X Extracts X X X X X X X X Extracts X X X X ..... ly: If the bills are in his own name or the telephones are used in his residence even if in the name of the company the credit is not allowed refer sec 17(5) of cgst act Reply By Ganeshan Kalyani: The Reply: Credit is allowed if the input is used in course or furtherance of business. If telephone is used partially for business and partly for person use then credit is allowed of the input tax wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich is used for business purpose. Reply By Ganeshan Kalyani: The Reply: Telephone service is subject to litigation. It need to be justified that the purpose is for business use. Reply By MARIAPPAN GOVINDARAJAN: The Reply: It the said services is utilized in the course or furtherance of business then it is allowed. Reply By Rajagopalan Ranganathan: The Reply: Sir, According to Section 17 (5) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (g) of CGST Act, 2017 In respect of goods or services or both used for personal consumption, input tax credit shall not be available. According to Section 17 (1) of CGST Act, 2017 "where the goods or services or both are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is attributable to the purposes of his business. " Reply By Himansu Sekhar: The Reply: I agree with the experts. Reply By KASTURI SETHI: The Reply: The reply of Sh.Ranganathan, Sir covers (includes) the replies of all experts. ITC is available but conditionally and has to be taken care of the phrase, "in the course of or for furtherance of business". In the Company's office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... telephone which is in the name of Director of the Company, ITC is admissible as telephone is being used in course of or for furtherance of business of the Company. Reply By Ganeshan Kalyani: The Reply: Telephone service may invite audit point. Say for e.g. a director is having telephone at home which is paid by the company. The telephone is also in the name of company. The director does business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... calls at home. He makes good business deal through that phone. But at the same time he is receiving or makes call to his relative. In this case how to bifurcate the expense. There is practical difficulties. Reply By KASTURI SETHI: The Reply: ITC is allowed even if phone is installed at home. Only it should be established that phone is used in the course or furtherance of business of the compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y registered under GST.
Reply By Ganeshan Kalyani:
The Reply:
I agree with you Sir. But it is a fact that the process of establishing that the phone is used in course or furtherance of business is a challenging job.
Reply By Himansu Sekhar:
The Reply:
It will be on case to case basis. X X X X Extracts X X X X X X X X Extracts X X X X
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