Is Your iPhone GST Hack Clever? Not If The Taxman Asks

On social media, tax-saving hacks often get more likes than they deserve. A popular tip doing the rounds is: "Buy an iPhone for ₹2 lakh and claim 18% GST input credit. You save ₹36,000!" On paper, this sounds like a smooth strategy. But as with most things involving tax, the devil lies in the details. Let's break down what this GST input tax credit (ITC) really means—and why blindly following such advice could cost you more in the long run, not just in money but also peace of mind.

- VIJAYKUMAR PURI

Conditions to avail GST ITC on gadgets

First, ITC isn't a discount. It's a credit reducing your GST liability, and it's only available to GST-registered businesses. If you are an individual without a business, this hack will not apply to you. Even if you are GST-registered, claiming ITC is not automatic. ITC isn't guaranteed either.

The gadget must be used strictly for business—using the phone for work calls, client emails, meetings. But the moment you hop on Instagram or Netflix, you are mixing business with personal use. In such cases, you can claim credit proportionate to business use. And yes, tax officers can ask for proof. Call logs, emails, app usage—if you can't show that it was primarily a work tool, your claim can be denied. If that happens, you will have to repay the credit, along with interest and penalties.

Rules on transfer