Posted on by abhishek

What is meant by provisional input tax credit?

  1. The input tax credit availed by the recipient in its return is allowed to the recipient on a provisional basis.
  2. Once the input tax credit availed by the recipient is matched with the corresponding details of outward supply furnished by the supplier or with the additional duty of customs paid by the recipient in respect of imported goods, the input tax credit will become final.

(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO. 28)