Input Tax Credit Under GST

Input Tax Credit Under GST- Conditions to claim

Input Tax- Input Tax in relation to a taxable person, means the Goods and Services Tax charged on any supply of goods and/or services to him which are used or are intended to be used, during furtherance of his business. Fulfillment of Input Tax Credit under GST ? Conditions To Claim?is one of the most critical activity for every business to settle its tax liability.

A registered person will be eligible to claim Input Tax Credit (ITC) on fulfillment of the following conditions:

  1. Possession of a tax invoice or debit note or document evidencing payment

  2. Receipt of goods and/or services

  3. Goods delivered by supplier to other person on the direction of registered person against a document of transfer of title of goods

  4. Furnishing of a return

  5. Where goods are received in lots or installments ITC will be allowed to be availed when the last lot or installment is received.

  6. Failure to make payment to the supplier towards supply of goods and/or services within 180 days from the date of invoice, ITC already claimed will be added to output tax liability and interest to be paid on such tax involved. On payment to supplier, ITC will be again allowed to be claimed.

  7. No ITC will be allowed if depreciation have been claimed on tax component of a capital goods.

  8. If invoice or debit note is received after

  • the due date of filing return for September of next financial year


  • filing annual return

whichever Is later

No ITC will be allowed

9. Common credit of ITC used commonly for

  • Effecting exempt and taxable supplies

  • Business and non-business activity

Credit will be allowed according to the RULES

Was this article helpful?

Related Articles