Input Tax Credit
Input Tax Credit– While paying tax on output, we can reduce tax if we havepaid on inputs and just pay the balance amount.
Can be claimed by everyone registered under GST only if he/she/his/her
a. is in possession of tax invoice
b. goods/services have been received
c. Returns have been filed.
d. tax charged has been paid to the government.
e. When goods are received in instalments – only when the last lot is received.
If registered under composition scheme in GST thenineligibleto claim ITC.
1. Does input tax includes tax (CGST/IGST/SGST) paid on input goods, input services and capital goods?
Yes, includes taxes paid on input goods,services and capital goods. Credit of tax paid on capital goods is permitted to be availed in one instalment.
2. Wherever goods are received in instalments, how will a registered person be entitled to ITC?
The registered person is entitled to the credit only upon receipt of the last lot.