Q. 211 If Incase I have paid GST on foreman commission @12% for FY 2021-22 under chit fund business. under what circumstances i can claim Input tax credit. Kindly clarify conditions for claiming ITC on chit fund with respective recent notifications issued ?

Ans. Earlier, services provided by a foreman of a chit fund in relation to chit were provided with the concessional rate of tax of 12%. And, input tax credit was not allowed then but the said entry has now been omitted w.e.f 18.07.2022.. Therefore, for FY 2021-22, ITC will not be available. Further, w.e.f 18.07.2022, the said services are chargeable with 18% and now full ITC may be claimed. For claiming ITC, the conditions mentioned in section 16(2) and rule 36 of the CGST rules to be complied with.