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Persons who are eligible to take Input Tax Credit (ITC) under Section 18(1) of CGST Act, 2017

Subject to such conditions and restrictions as may be prescribed under Rule 40, the following persons are eligible to take input credit—

Person already doing business before
introduction of GST who requires
mandatory registration under GST (Section 18(1)(a)]

Person who is although not required to have registration but goes for voluntary registration [Section 18(1)(b)]

Person who ceases to pay tax under composition scheme and shifts to regular scheme [Section 18(1)(c)]

Person whose exempt supply becomes a taxable supply [Section 18(1)(d)]

A person who has applied for registration under this Act within 30 days from the date on which he becomes liable to registration under GST and has been granted such registration 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 GST provisions;

A person who takes registration under section 25(3) 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 of grant of registration:

Where any registered person ceases to pay tax under section 10 (i.e. composition scheme), he shall be entitled to take credit of input tax in respect of inputs held in stock, 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 section 9 (See also section 18(4) below):
Provided that the credit on capital goods shall be reduced by such percentage points as may be prescribed

Where an exempt supply of goods or services or both by a registered person becomes a taxable supply, such person 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 relatable to such exempt supply and on capital goods exclusively used for such exempt supply on the day immediately preceding the date from which such supply becomes taxable:
Provided that the credit on capital goods shall be reduced by such percentage points as may be prescribed.

The amount of credit under section 18(l) shall be calculated in such manner as may be prescribed. [Section 18(5)]

 
Apportionment of Input Tax Credit (ITC) under GST [Section 17(1), (2) & (3) of CGST Act, 2017] GST - Ready Reckoner in India Conditions, Restriction and Manner of taking Input Tax Credit (ITC) by the Persons under Section 18(1) [Rule 40] of CGST Act, 2017
 

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