Eligibility criteria for an Input tax credit

Who can claim the input tax credit?

The input tax credit can be claimed by a person who is registered under GST only if he is meeting the conditions that are mentioned below:

• The input tax credit can be claimed only by a person that has a GST registration and has filed the GSTR 2 returns.
• The dealer should possess the tax invoice or the debit note that is issued by the supplier of input or the input services.
• The said goods or services or both should be received.
• The supplier has made the GST payment that is charged to the government concerning such supply.
• When the goods are received in installments the input tax credit can be claimed only when the last lot is received.
• No Input tax credit is allowed if depreciation has been claimed on the tax component of a capital good.

Documents required for claiming GST Input tax credit

What documents are required for claiming the GST input tax credit?

As a registered taxable person the input tax credit can be claimed on basis of the following documents:

step:1 An invoice that is issued by the supplier of goods or services

step:2 An invoice that is issued by the recipient of the goods and services supplied by an unregistered dealer. Such supply comes under the reverse charge mechanism. This mechanism involves the supplies made by an unregistered person to a registered person.

Step 3 A debit note that is issued by the supplier of the tax charged is less than the tax payable concerning such supply.

Step 4 A bill of entry or similar documents are also required to document an integrated tax on imports.

Step 5 An invoice or credit note that is issued by an input service distributor as per the rules under GST.

step:6 A supply bill by a dealer that is opting for a composition scheme or an exporter or a supplier of the exempted goods.

Basic requisites for claiming the input tax credit

What are the conditions under which Input tax credit can be claimed?

The following requisites are mandatory for claiming the input tax credit under the GST:

• The Individual must be registered under the GST law.
• A tax invoice or the debit note that is issued by the registered supplier showing the tax amount.
• The goods or the service should be received.
• The supplier should file the returns and pay the tax there on to the government.
• Where the goods are received in parts or installments, the input tax credit may be claimed on the receipt of the last lot or the installment.
• Where the input tax credit is included in the cost of the capital goods and the depreciation on the tax is claimed, no input tax credit is allowed.
• The input tax credit will not be allowed if the same is not been claimed within the prescribed time.