Input tax credit

ITC is allowed provisionally based on the supplier tax invoice. payment of tax by supplier is one of the condistions to take input tax credit. However, currently there is no mechanism to ensure that the supplier has paid the applicable taxes.

We can only view the details in GSTR-2A. In case the supplier has paid taxes through GSTR-3B and not disclosed in GSTR-1, we cannot see such details in GSTR-2A though he has paid the tax. Therefore, in my view there should not be any restirction in taking credit even if the supplier has not uploaded the details in GSTR-1.

Till the provisions of matching are made effective or new return procedures are implemented, the credit can be availed based on the tax invocie issued by the supplier after receiving the goods or services.

To claim input credit under GST –

• You must have a tax invoice(of purchase) or debit note issued by registered dealer

Note: Where goods are received in lots/installments, credit will be available against the tax invoice upon receipt of last lot or installment.

• You should have received the goods/services

Note: Where recipient does not pay the value of service or tax thereon within 3 months of issue of invoice and he has already availed input credit based on the invoice, the said credit will be added to his output tax liability along with interest.

• The tax charged on your purchases has been deposited/paid to the government by the supplier in cash or via claiming input credit
• Supplier has filed GST returns

Uploading job should be done by the supplier in GSTR-1 that is not a concern for the recipient. 

YES BUT TO CLAIM ITC IT IS ALSO IMPORTANT THAT SUCH BILL IS SHOWN BY SUPPLIER IN GSTR_1 

Showing in GSTR-1 does not result in payment of tax. The Form GSTR-1 does not have mechanism to pay tax. How can we say that the disclosure in GSTR-1 amounts to payment of tax by the supplier?

BUT FILING OF RETURN FROM THE SUPPLIER SIDE IS ALSO MANDATORY TO CLAIM ITC