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Itc on senitizer

ashok tanwar (costing officer) (39 Points)

29 July 2020

can we claim itc on senitizer & mask

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6 Replies

Mithun Chakraborty (None) (32 Points)
Replied 29 July 2020

If is for furtherance of business, allowed. but it distribut as without consideration not allow as per sec 17

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ashok tanwar (costing officer) (39 Points)
Replied 29 July 2020

Entity uses senitizer for senitising his emplo.and customer so it is not sale hence sec 17 applicable but in my opinion govt. will gives relaxation in sec17

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 29 July 2020

Yes, If is used for furtherance of business, than allowed. If that used by business itself like in shop, factory or for employees or customer than allowed.
But it distribution as without consideration not allow as per sec 17.

Vijayprakash P (1313 Points)
Replied 29 July 2020

The Economic Times reported that the Government could allow Companies to claim ITC for Personal Protective Equipment (PPE), Sanitiser, Mask and other such goods distributed free for battling Covid-19 officials of CBIT aware of the development said the issue was being examined and a decision is expected shortly. One of the official said the govt. had received several representations seeking relaxation in section 17(5)(h) of CGST Act 2017, which does not permit credit on goods given for free or as a gift, or lost, stolen, destroyed or written off.

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