Presentation on ITC under GST covering: 1) Eligibility and Conditions for taking ITC 2) Blocked Credits 3) Utilization of ITC Disclaimer - This content is purely for Educational Purpose only. Take Professional consultation before taking any decision based on the contents of this presentation. We shall not be responsible for any loss, whatsoever caused therein.

1. INPUT TAX CREDIT
Under Goods and ServiceTax

3. Eligibility and
Conditions for taking ITC
What are the technical aspects of the scheme of InputTax
Credit under GST…?

4. What is ‘Input Tax’…?
In relation to a ‘Registered Person’
Means CGST, SGST, IGST or UTGST
Includes-
a) IGST charged on Import of Goods
b)Tax Payable under RCM
ExcludesTax Paid under Composition levy

5. Who is Eligible for Credit…?
Every ‘Registered Person’
ITC charged
on supply of
goods or
services of
both
'Made to
him’
Used or
Intended to
be Used
In the
course or
furtherance
of ‘his
Business’

6. Conditions for taking ITC
Possession of Tax
paying Document
• Tax Invoice
• Debit Note
• ISD Invoice
• RCM Invoice
• Bill of Entry
Receipt of Goods
and/or Services
• Goods received in
installment – ITC on last
installment
• ITC eligible under Bill to
Ship to Model
Payment to Supplier
within 180 days
Payment of Tax
charged by Supplier

7. When is ITC not eligible…?
• If Depreciation
claimed on tax
component – No
ITC eligible of such
Tax Component
Sec -16(3)
• No ITC of Taxes paid
on account of
Fraud, Willful
Misstatement or
Suppression of
Facts
Rule 36(3)
• ITC is eligible in
respect of all kinds of
goods and/or
services except for a
few outlined as
Blocked Credits
Sec – 17(5)

8. BLOCKED CREDITS
What is the Negative List of goods and services under GST of
which no credit shall be available…?

9. Motor Vehicles, Vessels, Aircrafts & related services
What is Blocked…? What is not Blocked…?
1) Motor Vehicles for transportation of
passengers having approved seating
capacity of not more than thirteen persons
(including driver)
1) Used for making following taxable
supplies –
Further supply of such vehicles
Transportation of passengers
Imparting training
2)Transportation of Goods
3) General Insurance, Servicing, Repair &
Maintenance relating to Motor Vehicle,
Vessel & Aircraft used for purposes
specified above
2)Vessels & aircrafts
3) General Insurance, Servicing, Repair &
Maintenance relating to above

10. Specified Goods or Services

11. Construction of Immovable Property
Works Contract Service
• Except when used as input service for further supply as
Works Contract Service
Goods or Services received for construction on
own account
• Even when they are used in the course or furtherance of
business

12. Judicial Pronouncement…
Hon’ble Orissa High Court in
the case of Safari Retreats
Pvt. Ltd. held that credit of
inputs/input services used
for construction of malls for
the purpose of letting out is
allowable.

13. Others…
• Goods or received or both received by a Non-resident taxable person
Goods or Services or both on which tax is paid u/s 10
• Goods lost, stolen, destroyed, written off or disposed
Goods or Services or both used in personal consumption
Taxes paid on account of Fraud, Seizure and Confiscation.

14. Utilization of ITC
What are the recent changes in the manner of utilization of
ITC…?

15. Rule 88A…
Example:
Pre –Amendment:
Particulars IGST CGST SGST
InputTax Credit 200 100 100
OutputTax Liability - 200 200
Particulars IGST CGST SGST
OutputTax Liability - 200 200
Less: ITC
CGST/SGST 100 100
IGST 100 100
Payment in Cash - - -

16. Rule 88A…
Post –Amendment:
Particulars IGST CGST SGST
OutputTax
Liability
- 200 200
Less: ITC
IGST - 200 -
CGST/SGST - 100
Payment in Cash - - 100
Balance ITC - 100 -

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