alleryStart learning →ITC under Section 16 is allowed on supplies used in what?
ACourse or furtherance of business
BPersonal needs of the proprietor
CMaking only gifts to relatives
DActivities outside any business
Answer & Solution
Correct answer: A. Course or furtherance of business
A registered person may take credit of input tax on supplies meant for use in the course or furtherance of business.
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Related questions
An Input Service Distributor is best described as what?Which return must be filed before claiming ITC under Section 16(2)(d)?ITC on a supply requires that the tax charged has been actually what?A bank has eligible ITC of Rs 80,000 in a month and picks the 50 per cent option. What creCommon input ITC Rs 90,000; two-thirds relates to taxable supplies, rest exempt. Credit alInputs carry total ITC of Rs 60,000, and 25 per cent of their use is for non-business purpInvoice Rs 1,00,000 plus 18% GST unpaid beyond 180 days. ITC added back, ignoring interestInter-State sale Rs 5,00,000, inputs Rs 3,00,000, IGST 12% on both. Net IGST?