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Itc on packing bags

26 April 2020

we are manufacturer of sugar.

we have send the material to customers in PP Bags.

can we avail ITC on purchase of PP bags.

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4 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 26 April 2020

Yes you can .
even though it's not charged separately on bill when it's supplied , but Assume that included in value of goods(sugar) being supplied.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 26 April 2020

Yes... You can avail ITC for the PP bags.

Shivam RC (Student) (23683 Points)
Replied 26 April 2020

Yes you can avail ITC on Purchase of PP bags since it is used in the course of or furtherance of business. Section 16(1) of the CGST Act 2017 states that ITC can be claimed on all goods or services which are "used in the course of or furtherance of business" ( subject to Section 17(5) of the CGST Act 2017 i.e. BLOCKED CREDIT ).

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