10. Input Tax Credit

Q 1. What is input tax?

Q 2. What is the implication of different definition of “input tax” in three acts viz CGST, SGST and IGST Acts?

Q 3. Can GST paid on reverse charge be considered as input tax?

Q 4. Does input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or capital goods?

Q 5. What is the ITC entitlement of 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? (Section 16(2))

Q 6. A person becomes liable to pay tax on 1st August, 2017 and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on …….

Q 7. What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?

Q 8. Where goods and/or services received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?

Q 9. Where goods and/or services received by a taxable person are used for the purpose of business and non-business supplies, whether the input tax credit is available to the registered taxable person?

Q 10. What would be input tax eligibility in cases where there is a change in the constitution of a registered taxable person?

Q 11. What would be input tax eligibility in case where the goods and/or services supplied by a registered taxable person become absolutely exempt?

Q 12. What would be input tax eligibility in cases where taxable person paying tax under section 7 opts to pay tax under Compounding Scheme under Section 8?

Q 13. A dealer paying tax on compounding basis crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?

Q 14. Mr. B, a registered taxable person was paying tax under composition rate up to 30th July, 2017. However, w.e.f 31st July, 2017. Mr. B becomes liable to pay tax under regular scheme. Is he eligible for ITC?

Q 15. Mr. A applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd June, 2017. Mr. A is eligible for input tax credit on inputs in stock as on …………..

Q 16. When shall a taxable person be not entitled to take input tax credit under sub-section (2), (2A) or sub-section (3) of Section 16 in respect of any supply of goods and / or services to him?

Q 17. Whether the principal is eligible to avail input tax credit of inputs sent to job worker for job work?

Q 18. What is the time period within which the inputs sent for job work has to be received back by the principal?

Q 19. Whether principal has to reverse the input tax credit on inputs which have not been received back from the job worker within 180 days?

Q 20. Which of the following is included for computation of taxable supplies for the purpose of availing credit:

Q 21. What is the time period within which the capital goods sent for job work has to be received back by the principal?

Q 22. What is the liability of the principal if the capital goods sent to job worker have not been received within 2 years from the date of being sent?

Q 23. A Taxable person is in the business of information technology. He buys a motor vehicle for use of his Executive Directors. Can he avail the ITC in respect of GST paid on purchase of such motor vehicle?

Q 24. Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act, 1961, will ITC be allowed in such cases?

Q 25. What are the conditions necessary for obtaining ITC?

Q 26. Where the goods against an invoice are received in lots or instalments, how will a registered taxable person be entitled to ITC?

Q 27. Who will get the ITC where goods have been delivered to a person other than taxable person (‘bill to’- ‘ship to’ scenarios)?

Q 28. What is the time limit for taking ITC?

Q 29. Is there any negative list on which ITC is not permitted?

Q 30. Section 29 of the MGL provides that the ITC would be confirmed only if the inward details filed by the recipient are matched with the outward details furnished by the supplier in his valid return. What happens if there is a mismatch?

Q 31. What will be the tax impact when capital goods on which ITC has been taken are supplied by taxable person?

Q 32. What is the recovery mechanism for wrongly availed credit?

One Reply to “10. Input Tax Credit”

  1. Rahil Shaikh

    I do not find one clarification:
    By mistake I paid GST twice on the same bill. How such excess GST paid can be adjusted in the next return?

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