Conditions to claim ITC

To claim Input Tax Credit (ITC), one of the conditions is that the supplier should have paid the tax.

This means that the supplier should have deposited the tax amount into the government's account.

 Mere filing of GSTR-1 (details of outward supplies) or GSTR-3B (summary of outward supplies and input tax credit) is not enough.

The supplier must have actually paid the tax liability. GSTR-1 and GSTR-3B are only returns filed by the supplier, declaring their outward supplies and tax liability.

However, payment of tax is a separate action that must be taken by the supplier.

To verify if the supplier has paid the tax, you can:

1. Check the supplier's GSTR-3B filing status and ensure they have reported the tax liability.

2. Verify the payment of tax through the "Payment of Tax" tab on the GST portal.

3. Ask the supplier for a receipt or proof of tax payment. Only when the supplier has paid the tax can you claim ITC.

If the supplier has only filed GSTR-1 and GSTR-3B but not paid the tax, you cannot claim ITC.

Sir 

Will it be suffice if they pay through ITC 

Please advise

Thanks

Utilize ITC for tax payment_: The taxpayer can utilize their available ITC for payment of tax, but not for payment of reclaim amount.

There are four main conditions under Section 16 to claim ITC and all four must be satisfied simultaneously:

1. You have a valid tax invoice or debit note (or other prescribed document)
2. You have received the goods or services (or both)
3. The tax has been paid to the government by the supplier, verified via GSTR-2B
4. You have filed your own GST returns

From January 2022, condition 3 is now strictly enforced through GSTR-2B. ITC is restricted to what reflects in GSTR-2B for the relevant month. If a supplier has not filed GSTR-1 or GSTR-3B and paid tax, the ITC will not appear in your 2B and cannot be claimed even if the invoice is genuine.

One more point: the invoice must be matched and accepted in the Invoice Management System (IMS) before it reflects in GSTR-2B.

If you are facing mismatches, this [GSTR-3B filing guide with ITC section walkthrough](https://taxgarden.in/blog/gst-login-gstr-3b-filing-step-by-step-guide-screenshots-2026) shows exactly where each condition gets verified in the portal.