All about Input Tax Credit
Goods and Services Tax has been the most significant reform in India. However, one thing that was highlighted in the whole matter is the mechanism of input credit under GST. For more, visit https://bit.ly/2TjlETL
Goods and Services Tax has been the most significant reform in India. However, one thing that was highlighted in the whole matter is the mechanism of input credit under GST. For more, visit https://bit.ly/2TjlETL
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The concept is nothing new from what already existed under the pre-GST indirect<br />
tax regime. The only difference is that its scope has been widened under GST.<br />
ITC cannot be applied to all types of input, as each state or a country has different<br />
rules and regulations. It is also viable to a dealer who has purchased good for<br />
resale.<br />
How to claim <strong>Input</strong> <strong>Tax</strong> <strong>Credit</strong>?<br />
Here are certain conditions that you need to meet so as to be entitled to ITC<br />
under the GST scheme:<br />
• You should be a registered taxable person.<br />
• ITC can be claimed, only if the goods and services received are used for business<br />
purpose.<br />
• It can be claimed on zero-rated/exports supplies.<br />
• If in case the constitution changes due to the transfer of business, or merger,<br />
then unused <strong>Tax</strong> <strong>Credit</strong> can be transferred to the sold, merged, or transferred<br />
business. This condition is applicable only for a registered taxable person.<br />
• ITC can be credited to Electronic <strong>Credit</strong> Ledger in a provisional manner on a<br />
common portal.<br />
• To claim <strong>Input</strong> <strong>Tax</strong> <strong>Credit</strong>, supporting documents required are tax invoice,<br />
supplementary invoice, and debit note.
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