CS Professional Important topic of GST INPUT TAX CREDIT (ITC)

CS Professional Important topic of GST INPUT TAX CREDIT (ITC)

Input tax credit is the type ofcredit that manufacturers received for paying input taxes towards goods used in the manufacture of products. Similarly, a dealer is entitled to input tax credit if he has purchased goods for resale purpose.

ELIGIBILITY AND CONDITION FOR TAKING INPUT TAX CREDIT

• Only the registered person can take the credit for input, on such condition that input tax credit on the supply of goods or services are intended to be used in course and furtherance of business and the amount will be credited to the electronic ledger of such person
• CONDITION FOR CLAIMING INPUT TAX CREDITED

1. Have possession of a tax invoice or debit note issued by supplier registered under this act.
2. Has received the goods or service or both.
3. The tax which is charged of such apply should actually be paid to the government, either in cash or through utilization of input tax credit
4. Has furnished the return under section 39

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