Can companies avail input tax credit for most of their business expenses
Dear Friends, The New GST reforms will clear all errors in the GST input credit process. This will reduce down the tax burden on companies or business owners So that the benefit can be shared with customers by lowering the cost of products or services. The input tax credit is one of the important features of GST, “Any GST registered person can avail GST input tax credit paid on the inward supply of goods or services which is used for the growth of the business. Under the current GST tax regime, if a retailer purchases a fridge, under GST, he can claim input tax credit paid on the new fridge when he files taxes. Also, the input tax credit could be claimed on the tax paid on taking a client for lunch, or on goods or services used for companies' CSR (corporate social responsibility). In GST, the input tax credit can be availed on all business expenses except employee benefits and construction. The new GST system is much more business-friendly and will increase...