impact of GST
This query is : Resolved
19 June 2017
Dear sir,
if I purchase stationery for office use and paid amount to shopkeeper with GST. can I take credit of GST..
19 June 2017
yes u can take credit ..............but it depend that the supplier also filed the details of yours in their outward supply return..........like your registration number etc................if supplier not filed your detail then output tax liability will be increase
19 June 2017
Thanks Pradeep ji.it means we can take credit exclusive sec 17 sub sec 5
28 July 2024
Yes, you can generally take credit for GST paid on stationery used for office purposes. Here’s a detailed explanation:
### **1. **GST Credit on Stationery**
Under the Goods and Services Tax (GST) regime in India, businesses are allowed to claim Input Tax Credit (ITC) on the GST paid on inputs used for their business operations. Stationery used for office purposes typically qualifies as an input, and the GST paid on such purchases can generally be claimed as ITC.
### **2. **Eligibility for ITC**
- **Input Tax Credit Eligibility:** According to Section 16 of the CGST Act, a registered person is eligible to take credit of the input tax on goods and services used in the course or furtherance of business.
- **Stationery as Input:** Stationery items like paper, pens, files, etc., are generally used in the course of business operations and hence, the GST paid on them is eligible for ITC.
### **3. **Exceptions Under Section 17(5)**
However, certain restrictions and exceptions apply under **Section 17(5)** of the CGST Act, which outlines the cases where ITC is not allowed. These include:
- **Section 17(5)(a)**: ITC on goods or services used for personal consumption.
- **Section 17(5)(b)**: ITC on goods or services used for non-business purposes.
- **Section 17(5)(c)**: ITC on goods or services used for making exempt supplies.
- **Section 17(5)(d)**: ITC on motor vehicles and other specified goods and services unless used for specific purposes.
### **4. **Stationery and Section 17(5)**
Stationery typically does not fall under the exceptions listed in Section 17(5). Therefore, as long as the stationery is used for business purposes, you should be able to claim the ITC on the GST paid.
### **5. **How to Claim ITC**
To claim ITC on GST paid on stationery:
1. **Ensure Proper Documentation:** Make sure you have valid tax invoices from your suppliers showing the GST charged.
2. **Record in GST Returns:** Include the details of the purchases and the corresponding ITC in your GST returns (GSTR-1 and GSTR-3B).
3. **Maintain Records:** Keep proper records and documentation for any GST credits claimed, as these may be subject to audit or verification.
### **6. **Practical Example**
If you purchase stationery worth ₹10,000 and the GST paid is ₹1,800 (assuming 18% GST rate), you can claim an ITC of ₹1,800. Make sure this stationery is used exclusively for business purposes.
### **Summary**
- **ITC on Stationery:** Yes, you can claim ITC on GST paid for stationery used in office operations.
- **Exceptions:** Ensure the stationery is not used for exempt supplies or personal consumption as per Section 17(5).
- **Documentation:** Keep valid invoices and include details in your GST returns.
For any specific queries or exceptional cases, it's advisable to consult with a tax professional or GST consultant to ensure compliance with the latest GST regulations and updates.
### **1. **GST Credit on Stationery**
Under the Goods and Services Tax (GST) regime in India, businesses are allowed to claim Input Tax Credit (ITC) on the GST paid on inputs used for their business operations. Stationery used for office purposes typically qualifies as an input, and the GST paid on such purchases can generally be claimed as ITC.
### **2. **Eligibility for ITC**
- **Input Tax Credit Eligibility:** According to Section 16 of the CGST Act, a registered person is eligible to take credit of the input tax on goods and services used in the course or furtherance of business.
- **Stationery as Input:** Stationery items like paper, pens, files, etc., are generally used in the course of business operations and hence, the GST paid on them is eligible for ITC.
### **3. **Exceptions Under Section 17(5)**
However, certain restrictions and exceptions apply under **Section 17(5)** of the CGST Act, which outlines the cases where ITC is not allowed. These include:
- **Section 17(5)(a)**: ITC on goods or services used for personal consumption.
- **Section 17(5)(b)**: ITC on goods or services used for non-business purposes.
- **Section 17(5)(c)**: ITC on goods or services used for making exempt supplies.
- **Section 17(5)(d)**: ITC on motor vehicles and other specified goods and services unless used for specific purposes.
### **4. **Stationery and Section 17(5)**
Stationery typically does not fall under the exceptions listed in Section 17(5). Therefore, as long as the stationery is used for business purposes, you should be able to claim the ITC on the GST paid.
### **5. **How to Claim ITC**
To claim ITC on GST paid on stationery:
1. **Ensure Proper Documentation:** Make sure you have valid tax invoices from your suppliers showing the GST charged.
2. **Record in GST Returns:** Include the details of the purchases and the corresponding ITC in your GST returns (GSTR-1 and GSTR-3B).
3. **Maintain Records:** Keep proper records and documentation for any GST credits claimed, as these may be subject to audit or verification.
### **6. **Practical Example**
If you purchase stationery worth ₹10,000 and the GST paid is ₹1,800 (assuming 18% GST rate), you can claim an ITC of ₹1,800. Make sure this stationery is used exclusively for business purposes.
### **Summary**
- **ITC on Stationery:** Yes, you can claim ITC on GST paid for stationery used in office operations.
- **Exceptions:** Ensure the stationery is not used for exempt supplies or personal consumption as per Section 17(5).
- **Documentation:** Keep valid invoices and include details in your GST returns.
For any specific queries or exceptional cases, it's advisable to consult with a tax professional or GST consultant to ensure compliance with the latest GST regulations and updates.
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