ITC Claim

This query is : Resolved

Deepak Kumar Tripathi (Querist)
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22 February 2020 Dear friends,
Can we Take ITC on Advertisement of Condolence meeting in news paper. if yes then tell me U/s of GST

CA Anita Bhadra

CA Anita Bhadra (Expert)
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22 February 2020 NO
ITC can be availed for services used or intended to be used in the course or furtherance of business

Gokul Sharma

Gokul Sharma (Expert)
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22 February 2020 but mam this is related to business because there are such mandatory clauses under co act to advertise ?
i have to advertise for following compliances

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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02 August 2024 Under GST law in India, Input Tax Credit (ITC) is available on expenses related to business operations, but there are specific conditions and restrictions regarding its eligibility.

### **ITC on Advertisement of Condolence Meeting**

**1. **Nature of Advertisement:**
- An advertisement for a condolence meeting is typically related to a personal event rather than a business activity.
- GST ITC is generally allowed for expenses that are directly related to the business operations and not for personal or non-business activities.

**2. **Eligibility Criteria for ITC:**
- **Section 16 of the CGST Act, 2017** outlines the eligibility criteria for claiming ITC.
- ITC can be claimed on goods and services used for the furtherance of business.
- **Section 17 of the CGST Act** specifies the conditions where ITC is not available, such as on personal expenses or those not related to business.

**3. **Relevant Sections:**
- **Section 17(5) of the CGST Act, 2017** lists the goods and services on which ITC is blocked. This includes:
- Personal use items or expenses not related to the business.
- Any goods or services used for personal consumption or non-business purposes.

### **Application to Condolence Meeting Advertisement:**

**1. **Business vs. Personal:**
- If the condolence advertisement is part of a business-related event, for instance, if it was related to a business partner or client, there might be an argument for claiming ITC.
- However, typically, such personal events do not qualify for ITC as they are not considered to be directly related to business operations.

**2. **Documentation and Compliance:**
- For claiming ITC, you need to ensure that the advertisement expense is directly related to the business activity and that proper documentation (like invoices) is maintained.
- Ensure that the expense falls within the permissible categories of ITC as per the GST law.

### **Conclusion:**
Given the nature of the expense (advertisement for a condolence meeting), it is unlikely that ITC would be allowed since it does not fall under business-related activities as per GST law. The GST provisions generally restrict ITC on expenses that are not directly related to business activities or are for personal use.

**Recommendation:**
For precise guidance tailored to your specific situation and to ensure compliance, consult with a GST expert or tax consultant. They can provide advice based on the latest rules and your unique circumstances.