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Gst input tax credit

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aps trust

2 Points Posted on 26 May 2020

what is the difference between Input tax credit claimed and utilised?

is there any time limit for utilisation of credit after it is claimed I. return?

Replies (2)

Quick Summary

This discussion clarifies the distinction between claiming and utilising Input Tax Credit (ITC) under GST. Claiming ITC means you are requesting credit for GST paid on purchases, subject to conditions outlined in Sections 16-21 of the CGST Act. Utilising ITC refers to using this available credit from your electronic ledger to offset output tax liabilities, governed by Sections 49, 49A, and 49B.

Shivam RC

Student

23693 Points Posted on 26 May 2020

INPUT TAX CREDIT : The term Input Tax Credit has been defined under Section 2 clause (63) of the CGST Act 2017 as : "input tax credit" means the credit of input tax."

INPUT TAX CREDIT "CLAIMED" : Input Tax Credit Claimed means that you are claiming the Tax ( say GST ) paid on purchase of Inputs ( Raw Materials, etc ), Input Services and Capital Goods. The Provisions and Conditions to claim and utilise ITC is governed under Chapter V of the CGST Act 2017 i.e. "INPUT TAX CREDIT" containing Six Sections ( SECTION 16 to SECTION 21 ). Section 16 sub-section (2) of the CGST Act 2017 provides "FOUR CONDITIONS" which needs to be satisfied for claiming Input Tax Credit ( ITC ).

INPUT TAX CREDIT "UTILISED" : Input Tax Credit Utilised means that you are utilising the credit available in your Electronic-Credit Ledger to set-off Output Tax, etc. Section 49, Section 49A, Section 49B governs the Utilisation and Order of Utilisation of ITC.