Who can claim Input Tax Credit under GST?

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By Sakshi Shah on February 18, 2019

Input Tax Credit is the credit of GST paid on the purchase of goods or services. The taxpayer can use it towards payment of GST on the sale of goods or services.

What is Input Tax Credit under GST?

Input Tax Credit of GST paid on the inward supply of goods or services or both that the taxpayer uses or intends to use for the purpose of business. The following persons can claim ITC:

  • The dealer registered under GST and holds a valid GSTIN
  • The dealer who has applied for registration within 30 days from the date on which he becomes liable to registration
  • A dealer not registered under Composition Scheme u/s 10

What are the documents required to claim Input Tax Credit under GST?

Taxpayer registered under GST can claim Input Tax Credit by filing his GST Returns. He can avail ITC on the basis of the following documents:

  • Tax Invoice issued by the supplier
  • Debit Note issued by the supplier
  • Revised Invoice issued by the supplier
  • Bill of Entry issued in case of Import
  • Document issued by Input Service Distributor (ISD)
  • Tax Invoice issued by the recipient in case of reverse charge

Who cannot claim Input Tax Credit under GST?

The following persons cannot claim Input Tax Credit under GST:

  • Business not registered under GST
  • Business registered under the Composition Scheme are not allowed to claim the input tax credit on its purchases
  • The business registered under GST but not filing GSTR-3B cannot claim ITC