Rule 16 with rule 37 itc

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This discussion clarifies the conditions for claiming input tax credit (ITC) under Section 16(2) of the CGST Act. It highlights that ITC is available if goods or services are paid for, including the tax, within 180 days of the invoice date. Failure to meet this 180-day payment deadline will result in the reversal of the claimed ITC, as stipulated by Rule 37 of the GST regulations.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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06 January 2024 Sir,
Input credit limitation rule 16 along with rule 37 in cgst act

RAJA P M

RAJA P M (Expert)
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06 January 2024 Ask Your query with clear details

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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14 January 2024 As per Section 16(2) of the CGST Act, 2017, a registered taxpayer can claim an input tax credit (ITC) on the goods and/or services received from the supplier. This is subject to the condition that the taxpayer has paid for the goods and/or services and the tax payable on them within 180 days of the issue of the invoice. However, in case of non-payment within 180 days, the ITC claim will be reversed per Rule 37 of GST.

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