Condition the claim the ITC. The point need to be considered for claiming ITC.

Condition to claim the Input Tax Credit Under GST

1. INPUT TAX CREDIT UNDER GST
BY CA POOJA GUPTA | + 917838968100, [phone] |
[email protected]
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]

2. INTRODUCTION
INPUT TAX CREDIT’ OR ‘ITC’ MEANS THE GOODS AND
SERVICES TAX (GST) PAID BY A BUYER ON ANY
PURCHASE OF GOODS AND/OR SERVICES THAT ARE
USED OR WILL BE USED FOR BUSINESS.
BUYER IS ELIGIBLE TO AVAIL THE ITC OF SAID GST
ON FULFILLMENT OF CERTAIN CONDITIONS. WRONG
AVAILMENT OF ITC AMOUNTS TO LOT OF LITIGATION,
INTEREST CONSEQUENCE AND PENALTY.
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
Possession of a tax invoice or debit note
Reconciliation with GSTR 2B
Received of good and services
Payment of tax by supplier
Input tax credit should not be restricted u/s 38:
Payment to supplier within 180 days
Depreciation on GST portion
Blocked credit:

3. POSSESSION OF A TAX INVOICE OR DEBIT
NOTE:
•FOR DOMESTIC PROCUREMENT FROM THE REGISTERED DEALER: BUYER
MUST HAVE POSSESSION OF TAX INVOICE: TAX INVOICE OR DEBIT NOTE
•FOR DOMESTIC PROCUREMENT FROM UNREGISTERED DEALERS AND GST IS
PAID UNDER THE REVERSE CHARGE MECHANISM: SELF-GENERATED INVOICE
•FOR IMPORT: INVOICE ALONG WITH BILL OF ENTRY
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
Section: 16 of the CGST
Act
Section 31(3) of the CGST Act
along with rule 36 of CGST Rule
Rule 36 of CGST
Rule

4. TAX INVOICE
TAX INVOICE SHOULD HAVE THE FOLLOWING FIELDS
•NAME, ADDRESS & GSTIN OF SELLER & BUYER
• A CONSECUTIVE SERIAL NUMBER NOT EXCEEDING SIXTEEN CHARACTERS
•DATE
•HSN
•QTY
•TAX RATE
•VALUE
•GST AMOUNT
•WHETHER TAX IS PAYABLE UNDER RCM
•DETAILS PF SHIP FROM AND SHIP TO IN CASE OF MATERIAL
•E-INVOICE ( IRN AND QR CODE) IF APPLICABLE ON SUPPLIER
•MANY MORE…..
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
Rule 46 of
CGST Rule

5. RECONCILIATION WITH GSTR 2B
DETAILS OF SUCH INVOICES OR DEBIT NOTES HAVE BEEN
FURNISHED BY THE SUPPLIER IN THE STATEMENT OF OUTWARD
SUPPLIES IN FORM GSTR-1 OR USING THE INVOICE FURNISHING
FACILITY.
THE DETAILS OF SUCH INVOICES OR DEBIT NOTES HAVE BEEN
COMMUNICATED TO THE REGISTERED PERSON IN FORM GSTR -
2B.
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
Section 16 read with Rule
36(4) of CGST Rule

6. RECEIVED OF GOOD AND SERVICES
BUYER MUST HAVE RECEIVED THE GOODS AND SERVICES. IF THE GOODS AR E
RECEIVED IN INSTALLMENTS, ITC CAN BE AVAILED WHEN THE LAST LOTS OR
INSTALLMENT IS RECEIVED.
THE SAME CONDITION IS APPLICABLE IN CASE OF SAME PAN AND DIFFER ENT
GSTIN.
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
Section 16 of
CGST Act

7. PAYMENT OF TAX BY SUPPLIER
•TAX HAS BEEN ACTUALLY PAID BY SUPPLIER AND GSTR 3B HAS
ALSO BEEN FURNISHED BY SUPPLIER.
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
Section 16 of
CGST Act

8. INPUT TAX CREDIT SHOULD NOT BE
RESTRICTED U/S 38:
ITC SHOULD NOT AVAILABLE BASIS VARIOUS SCENARIO AS SPECIFIED IN SECTION 38 OF
CGST ACT.
•CONTINUOUS DEFAULT IN PAYMENT OF TAX BY SUPPLIER
•TAX SHOWN BY SUPPLIER IN GSTR 1 IS MORE THAT TAX PAID IN GSTR 3B
•SUPPLIER HAS AVAILED THE EXCESS CREDIT
•SUPPLIER HAS MADE THE DEFAULT IN DISCHARGING THE TAX LIABILITY
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
Section 16 read with section
38 of the CGST Act

9. PAYMENT TO SUPPLIER WITHIN 180 DAYS
PAYMENT TO SUPPLIER SHOULD BE MADE WITHIN 180 DAYS FROM THE DATE OF
INVOICE. IF PAYMENT IS NOT MADE WITHIN 180 DAYS, ITC SHOULD BE REVERSED
ALONG WITH INTEREST.
HOWEVER, ITC CAN BE RE-AVAILED ONCE THE PAYMENT TO SUPPLIER IS MADE.
FURTHER, PLEASE NOTE THAT THERE IS NO-TIME LIMIT FOR RE-AVAILMENT OF ITC
ONCE PAYMENT IS MADE TO SUPPLIER.
FURTHER , PLEASE NOTE THAT INTEREST SHALL BE CALCULATED AS PER SECTION
50 OF CGST ACT.
.
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
Section 16 of CGST Act
along with 37 of the CGST
Rule

10. DUE DATE FOR AVAILMENT OF ITC
TIME LIMIT TO AVAIL THE ITC AGAINST INVOICE OR DEBIT NOTE
SHOULD BE EARLIER OF 30
TH
NOVEMBER OF THE NEXT FINANCIAL
YEAR OR DUE DATE OF FILING THE ANNUAL RETURN FOR THAT
FINANCIAL YEAR. NO ITC CAN BE CLAIMED BEYOND THE
AFOREMENTIONED DATES.
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
Section 16 of CGST Act

11. DEPRECIATION ON GST PORTION
NO ITC WILL BE ALLOWED IF DEPRECIATION IS CLAIMED ON GST
COMPONENT OF CAPITAL GOOD PURCHASED.
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
Section 16 of CGST Act

12. BLOCKED CREDIT
THERE ARE CERTAIN ITEMS THAT ARE NOT ELIGIBLE FOR
AVAILMENT THE ITC U/S 17(5) OF CGST ACT I.E. STAFF WELFARE
EXPENSES, RENT A CAB SERVICES, HEALTH INSURANCE OF
EMPLOYEE, MEMBERSHIP OF HEALTH & FITNESS CENTER, TAX HAS
BEEN PAID UNDER COMPOSITION SCHEME ETC.
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
Section 16 of CGST Act

13. BLOCKED CREDIT
THERE ARE CERTAIN ITEMS THAT ARE NOT ELIGIBLE FOR
AVAILMENT THE ITC U/S 17(5) OF CGST ACT I.E. STAFF
WELFARE EXPENSES, RENT A CAB SERVICES, HEALTH
INSURANCE OF EMPLOYEE, MEMBERSHIP OF HEALTH &
FITNESS CENTER, TAX HAS BEEN PAID UNDER COMPOSITION
SCHEME ETC.
Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
Section 16 of CGST Act

14. Condition to claim the ITC
CA POOJA GUPTA | + 91 7838968100 | [email protected]
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Amit S.K. Gupta & Co.
CA Pooja Gupta | [phone] |
Unit No. 729, JMD Megapolis, Sector 47, Gurgaon-122001