Input Tax Credit - FAQ on GST (2nd Edition) dated 31.3.2017

Chapter: 10
Input Tax Credit
Question 1	:	What is input tax?
Question 2	:	Can GST paid on reverse charge basis be considered as input tax?
Question 3	:	Does input tax includes tax (CGST/IGST/SGST) paid on input goods, input services and capital goods?
Question 4	:	Is credit of all input tax charged on supply of goods or services allowed under GST?
Question 5	:	What are the conditions necessary for obtaining ITC?
Question 6	:	Where the goods against an invoice are received in lots or instalments, how will a registered person be entitled to ITC?
Question 7	:	Can a person take input tax credit without payment of consideration for the supply along with tax to the supplier?
Question 8	:	What would happen of the ITC taken by the registered person if he has not paid the consideration along with tax within 180 days from the date of issue of invoice?
Question 9	:	Who will get the ITC where goods have been delivered to a person other than taxable person (‘bill to’- ‘ship to ’scenarios)?
Question 10	:	What is the time limit for taking ITC and reasons therefor?
Question 11	:	Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act,1961, will ITC be allowed in such cases?
Question 12	:	Is credit of tax paid on every input used for supply of taxable goods or services or both is allowed under GST?
Question 13	:	A taxable person is in the business of information technology. He buys a motor vehicle for use of his Executive Directors. Can he avail the ITC in respect of GST paid on purchase of such motor vehicle?
Question 14	:	Sometimes goods are destroyed or lost due to various reasons? Can a person take ITC to the extent of such goods?
Question 15	:	Can a registered person get ITC with respect of goods or services used for construction of a building for business purposes?
Question 16	:	What is the ITC entitlement of a newly registered person?
Question 17	:	A person becomes liable to pay tax on 1st August, 2017and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on:
Question 18	:	What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?
Question 19	:	What would be input tax eligibility in cases where there is a change in the constitution of a registered person?
Question 20	:	Where goods or services or both received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?
Question 21	:	If input tax credit is allowed only in respect of goods or services or both for effecting taxable supplies, would it not lead to loss of input tax credit on exempt supplies when exported?
Question 22	:	Which of the following is included for computation of taxable supplies for the purpose of availing credit?
Question 23	:	Where goods or services received by a registered person are used partly for the purpose of business and partly for other purposes, whether the input tax credit is available to the person?
Question 24	:	A person paying tax under compounding scheme crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?
Question 25	:	Are there any special provisions in respect of banking companies?
Question 26	:	Mr. A, a registered person was paying tax under composition scheme up to 30th July, 2017. However, w.e.f 31st July, 2017, Mr. A becomes liable to pay tax under regular scheme. Is he eligible for ITC?
Question 27	:	Mr. B applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd June, 2017. Mr. B is eligible for input tax credit on inputs in stock as on…………..
Question 28	:	What would happen to the input tax credit availed by a registered person who opts for composition scheme or where the goods or services or both supplied by him become wholly exempt?
Question 29	:	Is there any restriction on period for availment of ITC?
Question 30	:	What happens where the details of inward supplies furnished by the recipient do not match with the outward supply details furnished by the supplier in his valid return?
Question 31	:	Is input tax credit allowed only after matching?
Question 32	:	Can provisionally allowed ITC be used for payment of all liabilities?
Question 33	:	What will be the tax impact when capital goods on which ITC has been taken are supplied by taxable person?
Question 34	:	What is the tax implication of supply of capital goods by a registered person who had taken ITC on such capital goods?