Gst paid on expense

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alpesh

alpesh (Querist)
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22 August 2017 dear sir please give me list of expenses on which gst to be paid.whather credit is allowed.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 August 2017 https://www.caclubindia.com/files0512/109928_20170813143547_rcm_provision_for_gst_expenses.pdf

Check out the file from above link.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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07 September 2017 Expense list under GST https://www.caclubindia.com/share_files/details.asp?mod_id=74125

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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27 July 2024 Under GST, various types of expenses incurred by a business are subject to GST, and the availability of Input Tax Credit (ITC) on these expenses depends on their nature and use. Below is a list of common expenses where GST is applicable, along with information on whether ITC is allowed.

### List of Expenses Subject to GST and ITC Eligibility

1. **Purchase of Goods**
- **Applicable GST**: Depends on the nature of the goods (e.g., 5%, 12%, 18%, 28%).
- **ITC Allowed**: Yes, ITC is allowed if the goods are used for business purposes.

2. **Purchase of Services**
- **Applicable GST**: Depends on the nature of the service (e.g., 5%, 12%, 18%, 28%).
- **ITC Allowed**: Yes, ITC is allowed if the services are used for business purposes.

3. **Rent of Commercial Property**
- **Applicable GST**: 18%.
- **ITC Allowed**: Yes, if the property is used for business purposes.

4. **Professional Services (e.g., Legal, Accounting)**
- **Applicable GST**: 18%.
- **ITC Allowed**: Yes, if the services are used for business purposes.

5. **Utilities (e.g., Electricity, Water)**
- **Applicable GST**: 18%.
- **ITC Allowed**: Yes, if the utilities are used for business purposes.

6. **Repairs and Maintenance**
- **Applicable GST**: 18%.
- **ITC Allowed**: Yes, if the repairs and maintenance are related to business assets.

7. **Travel Expenses (e.g., Airfare, Hotel Stays)**
- **Applicable GST**: 5% on domestic travel, 18% on other services.
- **ITC Allowed**: Yes, if the travel is for business purposes.

8. **Insurance Premiums**
- **Applicable GST**: 18% (for most insurance services).
- **ITC Allowed**: Yes, if the insurance is related to business assets.

9. **Advertisement and Marketing Expenses**
- **Applicable GST**: 18%.
- **ITC Allowed**: Yes, if the expenses are for promoting business.

10. **Office Supplies and Stationery**
- **Applicable GST**: 18%.
- **ITC Allowed**: Yes, if used for business purposes.

11. **Lease of Equipment**
- **Applicable GST**: 18%.
- **ITC Allowed**: Yes, if the equipment is used for business.

12. **Import of Goods**
- **Applicable GST**: IGST (Integrated GST) applicable at the rate of the imported goods.
- **ITC Allowed**: Yes, ITC on IGST can be claimed if the goods are used for business purposes.

13. **Import of Services**
- **Applicable GST**: IGST.
- **ITC Allowed**: Yes, ITC on IGST can be claimed if the services are used for business purposes.

### Non-Eligible ITC Expenses

1. **Personal Expenses**
- ITC is not allowed on expenses that are personal in nature.

2. **Certain Motor Vehicles**
- ITC on the purchase of motor vehicles is restricted unless they are used for specific purposes (e.g., further supply of vehicles).

3. **Food and Beverages**
- ITC is not allowed on food and beverages, if they are not used for business purposes, or for employee welfare.

4. **Outdoor Catering**
- ITC is not allowed on outdoor catering services unless used for business purposes.

### Key Points to Remember

- **Eligibility for ITC**: ITC is available only if the expenses are used for business purposes and are not specifically excluded under GST rules.
- **Documentation**: Proper documentation and compliance with GST invoicing and filing are essential to claim ITC.
- **Restrictions**: Certain restrictions apply based on the nature of the expense and its usage.

### Resources for Reference

- **GST Portal**: [GST India Portal](https://www.gst.gov.in/)
- **GST Act & Rules**: Refer to the GST Act and Rules for detailed provisions and exemptions.

If you need specific guidance or have unique scenarios, consulting a GST expert or tax advisor is advisable to ensure compliance and optimal use of ITC.