Under Section 39, ITC cannot be availed by a registered person with respect to any debit note or invoice for goods or services supplied after due date of filing returns for the month of September towards the end of the financial year to which the invoice or debit note pertains, or filing the relevanRead more
Under Section 39, ITC cannot be availed by a registered person with respect to any debit note or invoice for goods or services supplied after due date of filing returns for the month of September towards the end of the financial year to which the invoice or debit note pertains, or filing the relevant annual return, whichever is earlier. Thus, the upper time limit for availing ITC is either the 20th October of the next Financial Year, or the date for furnishing the annual return, whichever is earlier.
The reason for such a restriction is that a change in return filing is not permitted after the September of the next Financial Year. In case annual return has been filed before September, changes cannot be made in the annual return after filing it.
However, in cases of new registration or where a person shifts from composition scheme to regular tax payment or where an exempt supply become taxable, the time limit for taking ITC is one year from the date of invoice of inward supplies. [Section 18(2) of CGST Act]
Yes, except a small list of items provided in the law (under Section 17(5) of the CGST Act, 2017), the credit is admissible on all items. These items include mainly those which for personal consumption, inputs used to construct immovable property (except machinery and plant), pipelines laid outsideRead more
Yes, except a small list of items provided in the law (under Section 17(5) of the CGST Act, 2017), the credit is admissible on all items. These items include mainly those which for personal consumption, inputs used to construct immovable property (except machinery and plant), pipelines laid outside factory premises, telecommunication towers, etc. along with the taxes paid on tax evasion.
No. ITC on motor vehicles can only be availed if the business purpose of taxpayer for purchasing such vehicles is to transport goods or passengers, provide services, use it for training purposes, or to supply those motor vehicles.
No. ITC on motor vehicles can only be availed if the business purpose of taxpayer for purchasing such vehicles is to transport goods or passengers, provide services, use it for training purposes, or to supply those motor vehicles.
No. ITC is not available for lost, stolen, written-off, or destroyed goods. ITC is also not available for goods which are gifted or given as free samples. [Section 17(5)(h) of CGST Act]
No. ITC is not available for lost, stolen, written-off, or destroyed goods. ITC is also not available for goods which are gifted or given as free samples. [Section 17(5)(h) of CGST Act]
No. ITC is not allowed on inputs used for construction of immovable property except plant and machinery. Plant and machinery too include only equipment, apparatus, and machinery which is fixed to the earth by structural support or foundation. It does not include land, building, etc.
No. ITC is not allowed on inputs used for construction of immovable property except plant and machinery. Plant and machinery too include only equipment, apparatus, and machinery which is fixed to the earth by structural support or foundation. It does not include land, building, etc.
A person applying for registration can take input tax credit of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration. If a person who was liable to register and has applied for registration withiRead more
A person applying for registration can take input tax credit of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration. If a person who was liable to register and has applied for registration within thirty days of attaining tax liability, ITC can be taken on inputs which are held in stock and inputs contained in finished and semi-finished goods held in stock exactly on the day before the date when the person became liable to pay tax. This is subject to further condition that the invoices pertaining to such inward supplies should not be more than a year old.
ITC can be claimed by a person who has obtained voluntary registration on inputs in stocks, semi-finished goods, and finished goods, as held on the day exactly before the date of registration. This is subject to further condition that the invoices pertaining to such inward supplies should not be morRead more
ITC can be claimed by a person who has obtained voluntary registration on inputs in stocks, semi-finished goods, and finished goods, as held on the day exactly before the date of registration. This is subject to further condition that the invoices pertaining to such inward supplies should not be more than a year old. Input service and capital goods lying in stock shall not be eligible for ITC. (Section 18(1)(b) of CGST Act, 2017)
ITC can be taken by registered persons on goods and/or services attributable to only taxable supplies. CGST Rules provide the manner of calculation of eligible credit.
ITC can be taken by registered persons on goods and/or services attributable to only taxable supplies. CGST Rules provide the manner of calculation of eligible credit.
No. Taxable supplies include zero-rated supplies so as to allow ITC on them. Also, there is a special provision under IGST Act which makes ITC available for zero-rated supplies made, without withstanding that such a supply may be exempt.
No. Taxable supplies include zero-rated supplies so as to allow ITC on them. Also, there is a special provision under IGST Act which makes ITC available for zero-rated supplies made, without withstanding that such a supply may be exempt.
What is the time limit for availing ITC and its reasons thereof?
Under Section 39, ITC cannot be availed by a registered person with respect to any debit note or invoice for goods or services supplied after due date of filing returns for the month of September towards the end of the financial year to which the invoice or debit note pertains, or filing the relevanRead more
Under Section 39, ITC cannot be availed by a registered person with respect to any debit note or invoice for goods or services supplied after due date of filing returns for the month of September towards the end of the financial year to which the invoice or debit note pertains, or filing the relevant annual return, whichever is earlier. Thus, the upper time limit for availing ITC is either the 20th October of the next Financial Year, or the date for furnishing the annual return, whichever is earlier.
The reason for such a restriction is that a change in return filing is not permitted after the September of the next Financial Year. In case annual return has been filed before September, changes cannot be made in the annual return after filing it.
However, in cases of new registration or where a person shifts from composition scheme to regular tax payment or where an exempt supply become taxable, the time limit for taking ITC is one year from the date of invoice of inward supplies. [Section 18(2) of CGST Act]
See lessWill ITC be allowed in cases where depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act,1961 has been claimed by the registered taxable person?
No. ITC will not be allowed in cases where depreciation for the said tax component has already been claimed by the taxable person.
No. ITC will not be allowed in cases where depreciation for the said tax component has already been claimed by the taxable person.
See lessIs ITC available on every input used for supplying taxable goods and/or services for which tax is paid under GST?
Yes, except a small list of items provided in the law (under Section 17(5) of the CGST Act, 2017), the credit is admissible on all items. These items include mainly those which for personal consumption, inputs used to construct immovable property (except machinery and plant), pipelines laid outsideRead more
Yes, except a small list of items provided in the law (under Section 17(5) of the CGST Act, 2017), the credit is admissible on all items. These items include mainly those which for personal consumption, inputs used to construct immovable property (except machinery and plant), pipelines laid outside factory premises, telecommunication towers, etc. along with the taxes paid on tax evasion.
See lessA taxable person in the business of information technology buys a motor vehicle to be used by his/her Executive Directors. Can s/he avail the ITC for the GST paid on purchase of such motor vehicle?
No. ITC on motor vehicles can only be availed if the business purpose of taxpayer for purchasing such vehicles is to transport goods or passengers, provide services, use it for training purposes, or to supply those motor vehicles.
No. ITC on motor vehicles can only be availed if the business purpose of taxpayer for purchasing such vehicles is to transport goods or passengers, provide services, use it for training purposes, or to supply those motor vehicles.
See lessCan a person take ITC if the goods are lost or destroyed due to various reasons?
No. ITC is not available for lost, stolen, written-off, or destroyed goods. ITC is also not available for goods which are gifted or given as free samples. [Section 17(5)(h) of CGST Act]
No. ITC is not available for lost, stolen, written-off, or destroyed goods. ITC is also not available for goods which are gifted or given as free samples. [Section 17(5)(h) of CGST Act]
See lessCan a registered person get ITC for goods or services used in construction of a building for business purposes?
No. ITC is not allowed on inputs used for construction of immovable property except plant and machinery. Plant and machinery too include only equipment, apparatus, and machinery which is fixed to the earth by structural support or foundation. It does not include land, building, etc.
No. ITC is not allowed on inputs used for construction of immovable property except plant and machinery. Plant and machinery too include only equipment, apparatus, and machinery which is fixed to the earth by structural support or foundation. It does not include land, building, etc.
See lessWhat is the ITC entitlement of a newly registered person?
A person applying for registration can take input tax credit of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration. If a person who was liable to register and has applied for registration withiRead more
A person applying for registration can take input tax credit of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of grant of registration. If a person who was liable to register and has applied for registration within thirty days of attaining tax liability, ITC can be taken on inputs which are held in stock and inputs contained in finished and semi-finished goods held in stock exactly on the day before the date when the person became liable to pay tax. This is subject to further condition that the invoices pertaining to such inward supplies should not be more than a year old.
See lessWhat is the eligibility of input tax credit on inputs in stock, input services and capital goods, lying in stock for a person who obtains voluntary registration?
ITC can be claimed by a person who has obtained voluntary registration on inputs in stocks, semi-finished goods, and finished goods, as held on the day exactly before the date of registration. This is subject to further condition that the invoices pertaining to such inward supplies should not be morRead more
ITC can be claimed by a person who has obtained voluntary registration on inputs in stocks, semi-finished goods, and finished goods, as held on the day exactly before the date of registration. This is subject to further condition that the invoices pertaining to such inward supplies should not be more than a year old. Input service and capital goods lying in stock shall not be eligible for ITC. (Section 18(1)(b) of CGST Act, 2017)
See lessIs ITC available on registered taxable person where goods and/or services received by a taxable person are used for affecting both the taxable and non-taxable supplies?
ITC can be taken by registered persons on goods and/or services attributable to only taxable supplies. CGST Rules provide the manner of calculation of eligible credit.
ITC can be taken by registered persons on goods and/or services attributable to only taxable supplies. CGST Rules provide the manner of calculation of eligible credit.
See lessIf input tax credit is allowed on goods and/or services only affecting taxable supplies, won’t it lead to loss of ITC on exported exempt supplies?
No. Taxable supplies include zero-rated supplies so as to allow ITC on them. Also, there is a special provision under IGST Act which makes ITC available for zero-rated supplies made, without withstanding that such a supply may be exempt.
No. Taxable supplies include zero-rated supplies so as to allow ITC on them. Also, there is a special provision under IGST Act which makes ITC available for zero-rated supplies made, without withstanding that such a supply may be exempt.
See less