INPUT

TAX
CREDIT ~ 1
Goods & Service Tax
 What is ITC?
Input Tax Credit or ITC is the tax that a
business pays on a purchase and that it
can use to reduce its tax liability when
it makes a sale.

How to Claim ITC?

GSTR-1 GSTR-2A GSTR-2B GSTR-3B
Conditions for Availing ITC;
Taxpaying documents such as tax invoice,
debit note etc.,
Goods / service should have been
received/deemed to be received by the taxable
person
Tax charged on the invoice and should have Exceptions To
Claiming ITC?
been paid to the credit of government.
Return should have been furnished by the tax
payer.
Credit for goods against an invoice received
in lots / installments can be availed only on
last lot in installment.
The timelines for entitlement of credit
against a particular invoice shall lapse on
the expiry of one year from date of issue.
 Utilization Of ITC;

Sec-49(5) -Way of utilisation

Sec-49(a) -zero balance of IGST is necessary to use other credits

Sec-49(b) -Power to prescribe order & the manner of utilization

Sec-88(a) -Order of utilisation