GST INPUT TAX CREDIT’S ELIGIBLE CONDITIONS U/S 16 OF THE CGST Act, 2017.

 GST INPUT TAX CREDIT’S ELIGIBLE CONDITIONS U/S 16 OF THE CGST Act, 2017.

 The registered persons under GST are eligible to take credit of input tax paid on supply of goods or services or both for the furtherance of business with the restrictions imposed u/s 49 of the CGST Act, 2017.

The registered person possess tax invoice or debit note along with the goods or services or both issued by the supplier.

The supplier of goods or services or both should comply the section 41 of CGST Act, 2017 to deposit tax into Government account;

The supplier of goods or services or both should furnished return u/s 39 of CGST Act, 2017;

The goods received in installment by registered person will be entitled to claim input tax credit upon receipt of last lot or installment;

Recipient of goods or services or both (excluding the supplies under reverse charge mechanism) the payment of consideration should be made with in 180 days from the issue of invoice.

In absence of the payment of consideration input tax credit availed by recipient added into tax liability along with interest on such amount.

The reversal of such input will be entitled for input tax credit after paying the consideration along with tax of such goods and services or both.

If, registered people claim depreciation on Cost of capital goods, plant and machinery, he will not entitle for input tax credit.

A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoices relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier.

 Important restrictions under Section 49 of the CGST, 2017 provide procedure of the payment of Tax , interest and penalty,fee etc.

The payment through Internet banking, credit or debit cards, National Electronic Fund Transfer, Real Time Gross Settlement, by such other mode and subject to such conditions and restrictions as may be prescribed, these payments will be credited to the electronic cash ledger of such person.

The amount available in the electronic cash ledger may be used for making any payment towards tax, interest, penalty, fees or any other amount payable under the Act, Rule or output tax under this Act or under the Integrated Goods and Services Tax Act.

SET OFF CGST, SGST, UGST and IGST INPUT CREDIT:

IGST INPUT

1. IGST Credit first set off against IGST.

2. Then against CGST.

3. Balance against SGST.

CGST INPUT

1. CGST Credit first set off against CGST.

2. CGST Credit first set off against IGST.

SGST INPUT

1. SGST Credit first set off against SGST.

2. Then against IGST.

UGST INPUT

1. UGST Credit first set off against UGST.

2.   Then against IGST.

CGST will not be utilise against the SGST or UGST

SGST OR UGST will not utilise against CGST

           The unutilised balance of input tax credit is entitled for refund u/s 54 of the CGST Act,2017.

 Note: the Informations provided in this writ up are only to impart education among public at large without consideration.

Suhail Anjum Siddiqui, Advocate

Mobile : 9810043819. 

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