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ITC On goods purchased for personal use as well as business use.

05 July 2018

my client had purchase steel vecell and freeze for his business use perpose as well as for personal use can ITC claim on this goods .

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7 Replies

R. CA (121 Points)
Replied 05 July 2018

yes Itc can be claimed on pro rata basis.

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 05 July 2018

What is the exact use for the vessel in business?

CA Shanky garg (Practicing Chartered Accountant) (217 Points)
Replied 05 July 2018

Yes, ITC is available on Goods purchased for both business and personal purpose. But, For personal Use - 5% reversal is required to be done.

dinesh (INTERNAL AUDITOR) (46 Points)
Replied 06 July 2018

No goods used for the purpose of business alone allowed as input .....personal purpose input will be treated as end user....if tax officer finds it in Assessment then personal input claimed will be reversed with panalty also based on ineligible input claimed ..

CA Shanky garg (Practicing Chartered Accountant) (217 Points)
Replied 06 July 2018

Please refer GST Provisions w.r.t Common Credit. Proportionate ITC will be available for above mentioned case.

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Vinod Babu (24196 Points)
Replied 06 July 2018

Agreed with all views.
This distinction between personal consumption and business consumption could very well become a litigious issue. The law provides that if any input is used partly for business and partly for non-business purposes, then credit would be available only to the extent it is attributable to business use.