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Input Tax Credit

Input Tax Credit - GST

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S CHRISTY MONISHA
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15 views10 pages

Input Tax Credit

Input Tax Credit - GST

Uploaded by

S CHRISTY MONISHA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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INPUT TAX

CREDIT
Prof. S. Christy Monisha
Assistant Professor
PG & Research Department of Commerce
Sri Ramakrishna College of Arts & Science
Coimbatore.
5.GST-INPUT-TAX-CREDIT
7.WHAT IS INPUT TAX CREDIT UNDER GST & HOW TO CLAIM IT?

MEANING
Input tax credit means at the time of paying
tax on output, you can reduce the tax you
have already paid on inputs.

Suppose, you are a manufacturer –


• Tax payable on output (final product) is Rs
450
• Tax paid on input (purchases) is Rs 300
• You can claim input tax credit of Rs 300 and
INPUT TAX CREDIT IN GST
Input tax credit mechanism is available to you
when you are covered under the GST Act. Which
means if you are a manufacturer, supplier, agent,
e-commerce operator, aggregator or any of the
persons mentioned, registered under GST, you are
eligible to claim input tax credit for tax paid by you
on your purchases.
CLAIM INPUT TAX CREDIT UNDER
GST
To claim input tax credit under GST –
• Must have a tax invoice(of purchase) or debit
note issued by registered dealer.
• Must have received the goods/services.
• The tax charged on your purchases has
been deposited/paid to the government by the supplier in
cash or via claiming input tax credit.
• Supplier has filed GST returns.
• Supplier has uploaded the invoice in their GSTR-1 and
it appears in GSTR-2B of the recipient or buyer.
TYPE OF TAXES UNDER GST
All existing taxes such as VAT, CST, Excise Duty, Service
Tax, Entertainment Tax shall go away and GST will replace
them.

There are 3 types of taxes under GST

1.State GST – SGST

2.Central GST – CGST

3.Integrated GST – IGST


TIME LIMIT TO CLAIM AN INPUT TAX
CREDIT UNDER GST

The time limit to claim ITC against an invoice or


debit note is earlier of two dates, given below:

• 30th November of the next financial year.

• The date of filing the annual returns in form GSTR-


9 relating to that financial year.
ITEMS ON WHICH ITC IS NOT
ALLOWED
1.Motor vehicles, with a seating capacity of less than or equal to 13
persons (including the driver), goods transport agencies, vessels
and aircraft, except for a few cases. So as an exception, ITC is allowed
in the below cases:
1.Such motor vehicles and conveyances are further supplied i.e. sold.
2.Transport of passengers and goods.
3.Conveyance is used for imparting training on driving, flying, and
navigating such vehicles or conveyances.
2.Services of general insurance, servicing, repair and
maintenance relating to motor vehicles, vessels or aircraft in Sl. no.1.
3.Food and beverages, outdoor catering, beauty treatment, health
services, cosmetic and plastic surgery.
4.Membership in a club, health, and fitness centre.
5.Rent-a-cab, health insurance and life insurance
1.Travel benefits are extended to employees on
vacation such as leave or home travel concessions.
2.Works contract service for construction of an
immovable property (except plant & machinery or
for providing a further supply of works contract
service).
3.Goods and/or services for the construction of an
immovable property whether to be used for
personal or business use.
4.Goods and/or services where tax has been paid
under the composition scheme.
5.Goods and/or services used for personal use.
1.Goods or services or both are received by a non-resident
taxable person except for any of the goods imported by
him.
2.Goods lost, stolen, destroyed, written off or
disposed of by way of gift or free samples.
3.ITC will not be available in the case of any tax paid due to
non-payment or short tax payment, excessive refund or
ITC utilised or availed by the reason of fraud or willful
misstatements or suppression of facts or confiscation
and seizure of goods.
4.Special cases: Standalone restaurants will charge only
5% GST but cannot enjoy any ITC on the inputs.
5.The expenditure spent on Corporate Social
Responsibility (CSR) initiatives by corporates.

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