Hi
can we claim gst itc of gst paid on trading option?
2 Replies
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5128 Points)
Replied 23 July 2024
It can be claimed but with certain conditions.
- usiness purpose: The trading option should be used for business purposes, not for personal or investment purposes.
- Taxable supply:The option should be related to a taxable supply of goods or services.
- Invoice and payment: You should have an invoice and proof of payment for the GST charged on the trading option.
- Registration:You should be registered under GST and have a valid GSTIN.
- hOWEVER, there are some exceptions and limitations.1.Speculative transactions,ITC is not allowed for speculative transactions like trading in options for speculative purposes.
- Non - business purposes: ITC is not allowed if the option is used for non-business purposes.
- Blocked credits: ITC may be blocked under certain circumstances, like if the option is related to exempt supplies.
- To claim ITC, you should: 1. Maintain records,2.File GSTR-3B, 3.Consult a tax expert.
JASKARAN SINGH
(430 Points)
Replied 24 July 2024
If u have Broker for that only in that case itc can be claimed otherwise not possible
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