New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    A company avails ITC (Input Tax Credit) on office

    furniture purchase. Later, GST auditor disallows it. Is he right to do so, support your answer with relevant principle?
    A Yes, Principle of matching Correct Answer Incorrect Answer
    B No, Principle of unjust enrichment Correct Answer Incorrect Answer
    C No, Negative list under GST Correct Answer Incorrect Answer
    D Yes, Blocked credit provisions Correct Answer Incorrect Answer

    Solution

    Under GST, credit on furniture is blocked u/s 17(5) as it’s not used for business output services.

    Practice Next