{"id":13811,"date":"2020-09-03T07:42:49","date_gmt":"2020-09-03T07:42:49","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=13811"},"modified":"2024-06-03T17:51:36","modified_gmt":"2024-06-03T12:21:36","slug":"time-limit-and-other-conditions-to-claim-itc","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/time-limit-and-other-conditions-to-claim-itc\/","title":{"rendered":"Time limit and other conditions to claim ITC"},"content":{"rendered":"

One of the main mottos behind the introduction of the GST Act<\/a> is to avoid the cascading effect of taxes and to ensure seamless flow of credits. The GST Act includes provisions, restricts admissibility of ITC of goods and\/or services.<\/p>\n

The provision which restricts admissibility includes conditions for claiming ITC contained in section 16 of the CGST Act 2017 includes time limit as well.<\/p>\n\n\n\n
Content<\/strong><\/p>\n

What are the Provisions under GST<\/a><\/p>\n

What are the Conditions to claim ITC<\/a><\/p>\n

What is the time limit to claim the input tax credit<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\"Time<\/h3>\n

What are the Provisions under GST?<\/strong><\/h3>\n

According to section 16(4) of the CGST Act, 2017<\/a>, a registered person is eligible to take input tax credit with respect to the invoice or debit note for inward supply of goods and\/ or services, earlier of the due date for filing of GSTR 3B for the month of September for subsequent year or filing of annual return for the period to which such invoice or debit note pertains to.<\/p>\n

What are the Conditions to claim ITC?<\/strong><\/h3>\n

A registered person will be eligible to take input tax credit only if the following conditions are satisfied:<\/p>\n

    \n
  • Possession of a tax invoice or debit note or document evidencing payment.<\/li>\n
  • Receipt of goods and\/ or services.<\/li>\n
  • Furnishing of return.<\/li>\n
  • Goods delivered by the supplier to another person on the direction of the registered person against a document of transfer of title.<\/li>\n
  • Input tax credit will not be allowed if the depreciation has been claimed on the tax component of a capital good.<\/li>\n
  • If goods are received in lots or instalments then the input tax credit will be allowed when the last lot or instalment is received.<\/li>\n
  • If supplier failed to supply of goods and\/or services within 180 days from the date of invoice and ITC already claimed by the recipient will be added to output tax liability and interest to pay on such tax involved. After payment to the supplier, the input tax credit will be again allowed to claim.<\/li>\n
  • Common credit of input tax credit will be commonly used for<\/li>\n<\/ul>\n
      \n
    1. \n
        \n
      1. Effecting exempt and taxable supplies.<\/li>\n
      2. Business and non- business activity.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

        What is the time limit to claim the input tax credit?<\/strong><\/h3>\n

        The time limit to claim an input tax credit against an invoice or debit note is earlier of the following dates:<\/p>\n

          \n
        • Due date of filing GST return for September of next financial year.<\/li>\n<\/ul>\n

          Or<\/p>\n

            \n
          • Date of filing the Annual Returns relevant for that financial year.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

            One of the main mottos behind the introduction of the GST Act is to avoid the cascading effect of taxes […]<\/p>\n","protected":false},"author":2,"featured_media":14879,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[69],"tags":[],"yoast_head":"\nTime limit and other conditions to claim ITC - Goyal Mangal & Company<\/title>\n<meta name=\"description\" content=\"Read about Time limit and other conditions to claim ITC. 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