The document discusses the concept of Input Tax Credit (ITC) under GST, outlining its definition, how to claim it, eligibility conditions, and instances of ineligibility. It specifies requirements for claiming ITC, including possession of tax invoices and tax payments made. Practical examples are provided to illustrate the application of ITC in business transactions.

1. WELCOME TO MY PRESENTATION

2. INPUT TAX CREDIT
Under the Guidance of
SUNDAR B.N.
Asst.prof. & Course Co-Ordinator
Post-Graduation Studies in Commerce
G.F.G.C.W. Holenarasipura.
NAYANA H.K
1st M.COM

3. CONCEPTS
Meaning of input tax credit
How to claim input under GST.
Conditions to claim input tax credit.
In Eligibility of Input tax credit.
Requirements for ITC under GST.
Reference

4. MEANING ;-
The tax already paid by a person at the time of purchase of
goods or services and which is available as deduction from tax
payable.
Eg;- A trader purchases goods worth RS.100 and pay tax of 10%. On it and now
this trader sold such goods at RS.150 and collect tax of RS.15 from buyer. Now
the trader has to pay RS.15 to government but he had already paid RS.10 ,so
this RS.10 is ITC of the trader and will be allowed as deduction from tax
payable and he has to pay net RS.5 as tax.

5. CONDITIONS TO CLAIM ITC
Registered person will be eligible to claim ITC.(It
following conditions are fulfilled.)
 He should have received the goods or services or both.
 The supplied should have actually paid the tax.
 Furnishing of return.
 Possession of a tax invoice or debite note or document
evidencing payment.
 No ITC will be allowed if depreciation have been
claimed on tax component of a capital goods & plant &
machinery.
 If the invoice or debit note is received.
 Note;- Missed invoice will not eligible for ITC.

6. IN ELIGIBILITY OF INPUT TAX CREDIT
1. Payment for invoice made after
180 days from the date of issue
of invoice.
2. Claiming depreciation on
taxable capital goods.
3. Goods are to be received in
lots/installment.
4. Goods & Services is not used
for further course of business.

7. REQUIREMENTS FOR ITC UNDER GST
 Document receives the goods &
services from the supplier are
required.
 Document of actual tax paid by the
recipient of person
(dealer/manufacturer) to the
government.
 proof of GST paid.
 Proof of copy of GST return is
necessary & furnishing of GST return
to GST authority.

8. PROBLEM
Mr. X , a supplier of goods ,pays GST under regular scheme he has made the following outward
taxable supplies in a tax period;
Particulars Rs
Inter state supply of goods 300000
Intra-State supply of goods 800000
Mr ‘X’ has the following ITCs with him at the beginning of the period
Particulars Rs
CGST 30000
SGST 30000
IGST 70000

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Retrieved from : G. VEDHAMURTHI
18/05/2022