Category: Conditions for availing ITC

In terms of Rule 36(2), Input tax credit can be availed by a registered person only if:
 All the applicable particulars prescribed in the Chapter VI [which contain Rule 46 to Rule 55] of the CGST Rules,2017 are contained in the document; and
 The relevant information contained in the document is furnished in FORM
GSTR-2 (Details of inward supply) by the recipient.
Further, in terms of Rule 36(3), Input tax credit cannot be availed on the tax paid in pursuance of any order where the demand has been confirmed on account of any fraud, willful misstatement or suppression of facts.

(ICAI FAQ PUBLICATION 06-09-2017 -: Input Tax Credit: FAQ NO. 42)

 

A registered person will be entitled to claim input tax credit only upon fulfillment of the following conditions:
 He is in possession of tax invoice/ debit note issued by a registered supplier or any other tax paying documents;
 He has received the goods and /or services or both;
 The tax charged on such supply is paid to the Government by the supplier (by way of cash or by utilizing input tax credit)
 He has furnished a valid return.

(ICAI FAQ PUBLICATION 06-09-2017 INPUT TAX CREDIT: FAQ NO.3)

As per the second proviso to Section 16(2)(d) of the CGST Act, 2017 if a recipient of the supply does not pay to its supplier the value of the supply along with the tax within 180 days from the date of issue of invoice by the supplier, the amount of ITC availed proportionate to the unpaid amount would be added to the output tax liability of the recipient of the supply along with the interest thereon. The credit so reversed can be reclaimed when the value is paid to the supplier along with the tax thereon. Thus the government is not assuring payment within 180 days.

(FAQ-7(c) TEXTILES)

1.  If the recipient fails to pay to the supplier the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, the amount of input tax credit availed proportionate to the amount of consideration not paid
   would be added to his output tax liability along with Interest thereon.
2. The ITC so reversed can be reclaimed by the recipient after payment of consideration along with tax payable there on subsequently.
3. This provision is not applicable in respect of deemed supplies made without consideration in terms of Schedule I to the CGST Act, 2017.

( FAQ 13: DRUGS AND PHARMACEUTICALS)