CA Niteshkumar Delvadiya

As a business owner, it's important to understand the process of claiming Input Tax Credit (ITC) in Indian GST. Here's a step-by-step guide to help you claim ITC correctly and in compliance with the latest laws. 1/ Maintaining accurate records is key to claiming ITC. Ensure that all invoices and receipts are properly filed and organized. Any discrepancy in the details provided can lead to rejection of ITC. 2/ Check if the supplier has filed their GSTR-1 and GSTR-3B returns correctly. This is important because if the supplier has not filed the returns properly, the ITC claimed by you will not be allowed. 3/ Match the ITC claimed in GSTR-3B with the details available in GSTR-2B. Any discrepancies should be rectified before filing the returns 4/ Ensure that you have received goods or services for which ITC is being claimed. The ITC can only be claimed if it is in respect of goods or services received by the registered person. 5/ As per Section 17(5), certain supplies are excluded ...

Provisions of the Act (Including Amendments of Budget 2023): Sec. 16(2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,--   Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon paid by him along with interest payable under section 50 , in such manner as may be prescribed:   Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him to the supplier of the amount towards t...