Conditions for availing ITC in GST- A small note.

 

1.   Goods or services brought should only be used for further business purposes.
2.   Buyer shall retain such tax invoice, debit note, or other documents as evidence of such payment.
3.   Such tax invoice or debit note is filed by the supplier in Form GSTR-1, and it appears in the Buyer’s GSTR-2B form.
4.   The goods or services must have been delivered to the buyer.
5.   The buyer must furnish the GST returns in Form GSTR-3B.
6.   Where the goods are received in lots or installments, ITC will be allowed to be availed when the last lot or installment is received.
7.   The buyer must pay towards the supply of goods and/or services within 180 days from the invoice date. If they fail to do so, then the ITC already claimed will be added back to output tax liability and interest must be paid on such tax. ITC claim will be reinstated once the payment is made to the supplier.
8.   If depreciation has been claimed on the tax portion of a capital goods (Assets) purchase, no ITC will be permitted.
9.   Input tax credit can be claimed only before 30th November of the following year or before the filing of Annual GST returns whichever is earlier. That means to avail of the Input tax credit for Financial Year 2022-23, ITC for this year can only be claimed on or before 30th November 2023.
10. If Goods are lost or stolen or confiscated after the purchase, then ITC on such inward supply of goods are not eligible for an Input tax credit.