Do you get tax credit for F&O?

[Raymond_Reddington]

Hello Ladies and Gentlemen,
I know that F&O is considered as a business activity in India. I also know that when you are filling ITRs you can account business expenses and depreciation as well. But my question is since it is considered a business, can you get tax credit for GST charged on transactions?

@quick

[ShubhS9]

@Quicko

[Dev717]

I don’t think so sir . Cause u have to pay the income tax and it is of course treated as business but we have to remember it is capital gain .

[Quicko]

@Raymond_Reddington

Hello Ladies and Gentlemen,
I know that F&O is considered as a business activity in India. I also know that when you are filling ITRs you can account business expenses and depreciation as well. But my question is since it is considered a business, can you get tax credit for GST charged on transactions?

Hey Raymond,
If you are registered under GST on the same PAN, you can claim Input Tax Credit of the GST paid on expenses. In that case, the business expense can be claimed for the amount excluding GST. ITC of GST on expense can be claimed against Output GST.
If you are not registered under GST, you can claim the entire expenses (including GST) as a business expense.

[TAXIQ.IN]

Hi Raymond

Trading in Equity & derivatives is out of ambit of GST. So the GST charged by intermediary cant be taken as credit and if you take then you need to reverse the same.