31 July 2018
ou can be entitled to Input Tax Credit if you satisfy the below-mentioned conditions:
You must be registered as a taxable person under GST. Goods & services on which you want to claim ITC should have been used only for business purposes. Input Tax Credit can be claimed on taxable & zero-rated supplies (exports). If the constitution of registered taxable person changes due to sale, merger or transfer of business, then unused ITC shall be transferred to the sold, merged or transferred business. To claim ITC, you need supporting documents like tax invoice, debit note, supplementary invoice, etc. You can claim Input Tax Credit if you have actually received some goods & services. To claim ITC, the Input Tax must be paid through electronic cash ledger or electronic credit ledger. It is mandatory to file all the applicable GST returns. For goods which are received in lots, you can claim ITC only after you have received the final lot. You cannot claim Input Tax Credit in the following cases:
If you have acquired goods & services under a contract which results in the construction of immovable property other than plant & machinery. If you have paid tax on goods & services under GST composition scheme. Such goods & services which have been used by employees for their personal consumption. If depreciation has been claimed on the cost of capital goods (including ITC amount), then they are not eligible for Input Tax credit. No ITC can be claimed for goods or services used for personal purposes.
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