Can ITC be claimed on purchase of medicines? Similarly can ITC be claimed on amount paid on recharge of prepaid mobile? The registered person is manufacturer of textiles goods.
7 Replies
Vinod Araveti
(Practicing CA)
(1180 Points)
Replied 04 October 2017
Credit can't be calimed on medicines as per section 17(5)(g) of CGST Act 2017.
Credit on recharge also can be claimed but it is advaisable to reverse the 5% of credit because there is more chance that mobile balance is getting used for personal purpose also. As you can't bifurcate the value of usage for both personal and official purpose.
SSG
(1936 Points)
Replied 04 October 2017
The proprietor is paying for the mobile recharge of some of his employees. The medicines are being used for First Aid to the workers.
Vikram Bhardwaj
(Account Manager )
(43 Points)
Replied 04 October 2017
there is no any logic to claim input on prepaid mobile recharge unless you receive tax invoice
Vikram Bhardwaj
(Account Manager )
(43 Points)
Replied 04 October 2017
it is better you to purchase after giving gstin number
Vinod Araveti
(Practicing CA)
(1180 Points)
Replied 04 October 2017
Yes i too agree with vikram bhardwaj. If you able obtain the taxable invoice then you can follow the method i mentioned in the above.
Vinod Araveti
(Practicing CA)
(1180 Points)
Replied 04 October 2017
Yes i too agree with vikram bhardwaj. If you able obtain the taxable invoice then you can follow the method i mentioned in the above.
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