When can I claim Input Tax Credit under GST?

Input Tax Credit is the credit of GST paid on the purchase of goods or services. It is utilized to pay GST on the sale of goods or services. In order to be eligible to claim Input Tax Credit one must be registered under GST.

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GST Number Search: Verify GST Number or GSTIN online
Enter GST number or GSTIN (GST Identification Number) and verify GST details online. GST Number or GSTIN is a unqiue 15 digit number allotted after GST Registration.
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The taxpayer can claim the Input tax credit of GST if he fulfills the following conditions:

  • The taxpayer has a valid tax invoice or any other tax-paying document
  • He has received the goods or services
  • He has made payment of the value of goods or services including tax within 180 days from the date of issue of invoice
  • The supplier has paid the tax to the government
  • The supplier has filed his GST Returns
  • If he receives the inputs in lots, he can claim the credit only he receives the last lot of inputs

What is the time limit to claim Input Tax Credit under GST?

The taxpayer cannot claim Input credit for any tax invoice pertaining to a financial year after:

  • Filing the return for the month of September following the end of financial year to which such invoice pertains,
    OR
  • Filing of the Annual Return
    whichever is earlier

When can I not claim Input Tax Credit under GST?

Input Tax Credit is ineligible and the taxpayer cannot claim it under the following situations:

  • Time limit to avail Input Tax Credit is over
  • The dealer has not applied for Registration within 30 days from the date of becoming liable to register
  • The recipient has not made payment of the value of goods or services including tax within 180 days from the date of issue of invoice
  • If the taxpayer uses goods or services for personal consumption and not for business purpose
  • If the taxpayer uses goods or services for providing exempt supplies
  • The goods are stolen, lost, destroyed or given away as a gift or free samples
  • On motor vehicles and other conveyances except in certain cases
  • Goods or services provided relating to:
    • Foods and beverages, outdoor catering, health services, beauty treatment services, cosmetic and plastic surgery.
    • Club memberships, health and fitness centre memberships
    • Rent-a-cab, life insurance, health insurance except when it is mandatory for an employer under any law
    • Travel benefits like leave travel concession provided to employees
  • Hotel Services – If the dealer’s state of registration is different than the state in which the hotel is located, he cannot claim ITC unless he is also registered in the other state.
Claiming ITC in case of restaurant services and hotel services is different for every situation. Read more about it here.
Read Answer
Claiming ITC in case of restaurant services and hotel services is different for every situation. Read more about it here.
Read Answer

FAQs

Can I claim ITC for previous month?

A taxpayer who has not availed the eligible ITC of any of the previous months, may avail such ITC in any of the subsequent months, but anytime either before the filing of the annual return or filing of the GST Returns for September belonging to subsequent financial year, whichever is earlier.

Can we take ITC on RCM in same month?

Yes, you can avail the ITC of RCM in the same month after making the Cash payment of Tax Under RCM.

How long can ITC be taken?

Input tax credit cannot be taken on purchase invoices which are more than one year old. Period is calculated from the date of the tax invoice.

Got Questions? Ask Away!

  1. Hey @HarshitShah

    Input Tax Credit is the credit of GST paid on the purchase of goods or services. It is utilized to pay GST on the sale of goods or services. In order to be eligible to claim Input Tax Credit one must be registered under GST.

    To understand the conditions under which you can claim Input Tax Credit, please refer to this article.