ITC ON CONSUMABLE NOT FORMING PART OF FINAL PRODUCT, Goods and Services Tax - GST

[ajay chharia]

MY CLIENT IS A MNUFACTURER AND SELLER OF LARGEFORMAT PRINTERS. He consume inks internally for the purpose of TESTING OF PRINTERS, providing Demo to the customers in house or during exhibitions .WHETHER ITC WILL BE ALLOWED ON PURCHASE OF INK

Posts / Replies

[Ganeshan Kalyani]

Yes, ITC is eligible.

[KASTURI SETHI]

YES. The criteria is that ITC should be used in the course of business or furtherance of business as per Section 16(1) of CGST Act. One-to-one correlation is not required---AAAR Gujarat in Ref. 2022 (1) TMI 1056 - APPELLATE AUTHORITY FOR ADVANCE RULING, GUJARAT - Aristo Bullion P Ltd.

[Padmanathan Kollengode]

Agreed with experts. ITC is allowed in this scenario. Is there any specific reason why you think it may be disallowed?

[GUNASEKARAN K]

ITC can be taken on Inputs used for demo purpose.

[Finacus Technologies]

You are true, thank you so much for sharing, I learnt so much.