Input Tax Credit Mechanism

ITC under GST: Uninterrupted and seamless chain of input tax credit (hereinafter referred to as, “ITC”) is one of the key features of Goods and Services Tax. ITC is a mechanism to avoid cascading of taxes. Cascading of taxes, in simple…

Input Tax Credit Restriction: The introduction of Goods and Services Tax is a significant step in the reform of indirect taxation in our country. Amalgamating several Central and State taxes into a single tax would mitigate cascading…

Eligibility & conditions for taking Input Tax credit - 10 Questions Answered. Section 16 of CGST Act, made applicable to IGST vide Section 20 of IGST Act and Section 21 of UTGST. Hopefully GST will be implemented by July 1, 2017…

Matching of Input Tax Credit (ITC) under GST: Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount. Here’s how... When you buy a product/service from a…

GST Input Tax credit - Queries Asked by Clients to Chartered Accountant. For a tax to qualify as “input tax credit”, it must first be “input tax”. The law creates a separate terminology for this purpose as all input tax would not qualify as…

Transitional provision for Input Tax Credit: According to section 140(1) of the CGST Act, 2017 read with Transitional Provision rules, to avail CENVAT Credit, it is important that the person who is willing to take credit is registered under…

Twenty things to know about Input Tax credit under GST Regime: Section 16 and 17 of CGST Act deals with Input Tax Credit provisions. Further, recently CGST Rules for Input Tax Credit (relevant Rules being 36 to 45) are also notified through…