Availability Of Input Tax Credit (ITC) In Certain Special Circumstances under GST


(a)     Mandatory registration:

If a person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has been granted such registration then he shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act. TIC cannot be claimed after expiry of one year from the date of issue of tax invoice relating to supply for which ITC is claimed. TTC of Input services are not admissible in such cases.

Example: ABC Ltd. becomes liable to pay tax on 1st December, 2017 and has obtained registration on 13th January, 2018. ABC Ltd. is eligible for input tax credit on inputs held in stock as on 30th November, 2017.

If the registration is not taken within 30 days from the date the person so becomes liable then TIC on pre-registration stock would not be admissible.

(b) Voluntary Registration:

A taxable person takes voluntary registration even if his turnover is below exemption limit (below twenty lakh/ten lakh rupees, as the case may be). The person who obtains voluntary registration is entitled to take the input tax credit of input tax on inputs in stock, inputs in semi-finished goods and finished goods in stock, held on the day immediately preceding the date of grant of registration. TTC cannot be claimed after expiry of one year from the date of issue of tax invoice relating to supply for which TIC is claimed.

(c) Switching from Composition Scheme:

If a taxable person paying tax on compounding basis crosses the compounding threshold and becomes a regular taxable person, then he can avail TIC in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock and on capital goods on the day immediately preceding the date from which he becomes liable to pay tax under normal scheme. ITC cannot be claimed after expiry of one year from the date of issue of tax invoice relating to supply for which ITC is claimed.

(d) Exempt supply become taxable:

If an exempt supply of goods and or services by a registered taxable person becomes a taxable supply then such taxable person can avail ITC in respect of inputs held in stock and inputs contained in semi finished or finished goods held in stock and on capital goods exclusively used for such exempt supply on the day immediately preceding the date from which such supply becomes taxable. ITC cannot be claimed after expiry of one year from the date of issue of tax invoice relating to supply for which ITC is claimed. As per rule of the ITC, input two credit on capital goods as per c & d above shall be claimed after reducing the tax paid on such capital goods by 5% points per quarter of a year or part thereof from the date of invoice or such other documents on the trust of which capital goods have received by the taxable the claim of ITC as per paras a, b, c & d above shall be filed in Form GST ITC-01.

 
Related Topics ....
Conditions For Taking ITC ( Input Tax Credit) under GST
Limitations On Availing ITC (Input Tax Credit) under GST
Determination Of Input Tax Credit (ITC) In Respect Of Inputs Or Input Services ( Rule-7 of ITC Rules)
Determination Of Input Tax Credit (ITC) In Respect Of Capital Goods (Rule-7 of ITC Rules)
Restrictions On Availing ITC ( Input Tax Credit ) under GST
Utilizing Input Tax Credit (ITC) in respect of IGST, CGST, Cess and SGST/UTGST
Availability Of Input Tax Credit (ITC) In Certain Special Circumstances under GST
Transfer, Reversal Of Input Tax Credit (ITC) Under GST
Distribution Of Credit By Input Services Distributor (ISD) under GST
 
 
 
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