Eligibility of ITC in GST claimed in F.Y.2019-20 by a small company

Dear friends/experts,

A small manpower company has claimed the following ITC in GST for the F.Y. 2019-20. Can you please explain whether it is eligible or not along with provisions:

1) Stationery bills for office use
2) Office mobile recharge
3) Car maintenance expenses like tires, service, and other spare parts (where the car is in the name of the Director and is used for company purposes only)
4) Newspaper Ad (for office purpose)
5) Textile shop bill (Uniform clothes purchased for employees)
6) Gold jewelry bill (jewelry purchased for clients' marriage function)
7) Jewelry shop bill (Gold showcase piece for the company)
8) UPS purchased for the company
9) Fan purchased for the office.

Your earliest reply is greatly appreciated. Please kindly advise me along with provisions.

Thanks in advance.
- Maya
Location: Coimbatore, India

Eligibility of Input Tax Credit (ITC) in GST for the F.Y. 2019-20 by a Small Company

In the context of the Goods and Services Tax (GST) regulations in India, the eligibility of Input Tax Credit (ITC) for a small company in the financial year 2019-20 is subject to certain provisions. Let's assess the eligibility of the ITC claimed by the small manpower company for the mentioned expenses:

1. Stationery bills for office use:
- Eligible for ITC as stationery is a necessary business expense directly related to office operations.

2. Office mobile recharge:
- Eligible for ITC if the mobiles are used for business purposes and the recharge is solely for official use.

3. Car maintenance expenses like tires, service, and spare parts:
- Eligibility for ITC depends on the specific usage of the car. If the car is used exclusively for company purposes, ITC on maintenance expenses may be claimed.

4. Newspaper Ad (for office purpose):
- Eligible for ITC as advertising expenses for business promotion are generally allowed.

5. Textile shop bill (Uniform clothes purchased for employees):
- Eligible for ITC as uniforms for employees can be considered as part of business expenses.

6. Gold jewelry bill (jewelry purchased for clients' marriage function):
- Not eligible for ITC as it is not directly related to business operations.

7. Jewelry shop bill (Gold showcase piece for the company):
- Not eligible for ITC unless it can be proven that the jewelry is used for business purposes.

8. UPS purchased for the company:
- Eligible for ITC as it is a capital expense directly related to business operations.

9. Fan purchased for the office:
- Eligible for ITC as office equipment necessary for business operations.

It's essential for the small company to maintain proper documentation and ensure that expenses claimed for ITC comply with GST regulations to avoid any penalties or disputes with tax authorities. Consulting with a tax expert or accountant for specific advice tailored to the company's circumstances is recommended.

By adhering to the GST provisions and maintaining accurate records, the company can effectively claim eligible ITC and optimize its tax benefits within the legal framework.

Location-specific Note:
For businesses in Coimbatore, India, it is advisable to consult with local tax authorities or professionals to ensure compliance with any regional regulations that may impact the eligibility of ITC claims.

Remember, accurate record-keeping and adherence to GST guidelines are crucial for maximizing tax benefits and avoiding potential issues in the future.