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GST ITC CLAIM

ranjitkarmakar (service) (308 Points)

18 January 2025

My client having commercial rental income. Now he purchase some furniture for office use - can he claim ITC from the said purchase against output liabilities. Please advise and clarify - Thanks

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5989 Points)
Replied 18 January 2025

As a commercial rental income earner, your client can claim Input Tax Credit (ITC) on the purchase of furniture for office use, subject to certain conditions.

Eligibility for ITC To claim ITC, your client must:

1. _Be registered under GST_: Ensure your client is registered under GST and has a valid GSTIN.

2. _Use furniture for business purposes_: The furniture must be used for business purposes, i.e., for providing rental services.

3. _Have a tax invoice_: Ensure your client has a tax invoice from the supplier, containing the required details, such as GSTIN, invoice date, and amount.

ITC on Furniture Purchase Your client can claim ITC on the GST paid on the purchase of furniture, as it is a business expense.

Conditions for ITC Claim To claim ITC, your client must also ensure:

1. _Furniture is not for personal use_: The furniture must not be used for personal purposes.

2. _Furniture is not for making exempt supplies_: The furniture must not be used for making exempt supplies, such as providing rental services to a person who is not registered under GST.

3. _ITC is claimed within the stipulated timeframe_: ITC must be claimed within the stipulated timeframe, i.e., before filing the GST return for the month in which the invoice is received.

GST Return Filing Your client must also ensure that the ITC is reflected in the GST return, GSTR-3B, and the relevant details are furnished in GSTR-2A.

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