out state service provider issuing IGST
is this IGST covered under input
can we avail/take the input?
Yes, the Integrated Goods and Services Tax (IGST) charged on any supply of goods or services from an out-of-state service provider is indeed covered under the input tax credit (ITC) mechanism. Businesses that are registered under GST can claim ITC for the IGST paid on their purchases, provided they meet certain conditions12.
To avail of the input tax credit on IGST, the following conditions must be met:
The goods or services procured must be used for business purposes.
The recipient must have a tax invoice or a debit note issued by a registered supplier.
The recipient must have received the goods or services.
The tax charged must have been actually paid to the government by the supplier.
The recipient must have filed the relevant GST returns, such as GSTR-3B.
It’s important to ensure that the IGST paid appears in the GSTR-2B of the recipient to claim the ITC1. The ITC can be utilized to pay the output tax liability of IGST, CGST, or SGST/UTGST.
Please note that the rules and regulations regarding GST and ITC are subject to change
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