F & A
261 Points
Joined October 2010
As per the provisions of section 16, subject to the provisions of sec-17, sec-49, of the CGST Act you are entitled to take credit of input tax charged on any supply of goods or services which are used or intended to be used in the course or furtherance of his business.
It should be noted that eligible Input Tax Credit(ITC) should be availed on –
- receipt of supplies;
- possession of proper invoice/valid document;
- Tax has been paid;
- Returns were furnished, the same was reflecting in Form GSTR-2A;
- making payment to vendors within 180 days from the date of invoice, etc.
However, should ensure that ITC should not use for personal use/consumption, should not depreciation on tax component under Income Tax Act,1961, if availed then such ITC has to be reversed along with interest.