Gst input on options trading

Dimpy (Accounts) (103 Points)

23 July 2024

can we claim gst itc of gst paid on trading option?

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5707 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.