Question57: We are manufacturer of Chemical. Can we avail ITC on Printing and stationery used in our factory.

Answer: According to section 16 of CGST Act, ITC is eligible on any supply of goods or services which are used for business or furtherance of business subject to conditions in 16(2) i.e. he is in possession of a tax invoice or debit note issued by a supplier, he has received the goods or services etc.

In GST , it is not required that goods shall be used in factory. The credit is permitted even if used outside the factory or in office but intended to be used for business. Used for business and furtherance of business is primary condition.

ITC shall not be available only on those items which are specified in section 17(5) i.e motor vehicles, Work Contract services, goods lost, used for personal consumption etc. For complete list you will see section 17(5).

Thus tax paid on Printing and stationary which are used for business is eligible for input tax credit. .(REPLY dt. 14/2/2018)