TMI BlogEligibility and Conditions for taking Input Tax Credit (ITC) [Section 16 of CGST Act]X X X X Extracts X X X X X X X X Extracts X X X X ..... . Section 16(2) of CGST Act - Condition for availing Input Tax Credit Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless, Clause (a) He is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or Such other tax paying documents as may be prescribed under rule 36 of CGST Rules . Documentary requirements and conditions for claiming input tax credit Rule 36(1) - Eligible document for ITC a tax invoice issued by the supplier of goods services or both, as per section 31 CGST Act an invoice issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be availed by a registered person in respect of invoices or debit notes the details of which are required to be furnished under section 37(1) unless,- (a) The 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; and (b) the details of input tax credit in respect of such invoices or debit notes have been communicated to the registered person in FORM GSTR-2B under rule 60(7) of CGST Rules. Important Clarification Regarding Rule 36(4) of CGST Rules Clarification to deal with difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; Where the services are provided by the supplier to any person on the direction of and on account of such registered person. Clause (ba) the details of input tax credit in respect of the said supply communicated to such registered person under section 38 of CGST Act has not been restricted. Clause (c) subject to the provisions of section 41 , the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke input tax credit in respect of any invoice or debit note for supply of goods or services or both a) after the 30th of November, following the end of financial year to which such invoice or debit note pertains, or b) furnishing of the relevant annual return whichever is earlier of (a) or (b). Clarification in respect of section 16(4) of CGST Act for Debit note [ Circular No. 160/16/2021-GST dated 20th September, 2021 ] Issue 1:- Which of the following dates are relevant to determine the 'financial year' for the purpose of section 16(4): (a) date of issuance of debit note, or (b) date of issuance of underlying invoice. Clarification:- w.e.f. 01.01.2021, in case of debit notes, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mended provision of section 16(4) of the CGST Act. Example 2 . A debit note has been issued on 10.11.2020 in respect an invoice dated 15.07.2019. As per amended provision of section 16(4), the relevant financial year for availment of input tax credit on the said debit note, on or after 01.01.2021, will be FY 2020-21 and accordingly, the registered person can avail ITC on the same till due date of furnishing of FORM GSTR-3B for the month of September, 2021 or furnishing of the annual return for FY 2020-21, whichever is earlier. Extension of time limit of availing ITC for the financial year 2017-18 The registered person shall be entitled to take input tax credit after the due date of furnishing of the return under section 39 f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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