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.