Finance/Compliance Consultant
69607 Points
Posted on 02 July 2026
Section 16(2)(aa) of the CGST Act, effective from January 1, 2022, mandates that you can only claim Input Tax Credit (ITC) if the supplier has reported the invoice in their GSTR-1 and it is reflected in your auto-generated GSTR-2B. This eliminated the previous practice of claiming "provisional" ITC, making vendor compliance and regular reconciliation essential for all businesses.