Golden Conditions to Claim Input Tax Credit (ITC

 Golden Conditions to Claim Input Tax Credit (ITC) — Are You Meeting Them All?

Maximizing your business’s tax savings starts with mastering Input Tax Credit (ITC) under Section 16(2) of the CGST Act. Claiming ITC can lower your GST liability, but non-compliance may lead to interest, penalties, or disallowances. Here are the 5 essential conditions to claim ITC rightfully: ✅ 1. Possession of a Valid Tax Invoice No invoice = No ITC. Simple and strict. ✅ 2. Receipt of Goods or Services Goods/services must be actually received to be eligible. ✅ 3. Supplier Has Paid the Tax to the Government You can’t claim ITC unless your vendor has deposited the tax. ✅ 4. ITC Must Be Declared in GSTR-3B File it correctly in your monthly return. ✅ 5. ITC Must Be for Business Use Personal use? That’s a straight disqualification. Note: Always reconcile ITC claims with GSTR-2B before filing.

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