Section 16 of CGST Act, 2017

Overview of Input Tax Credit (ITC) Updated 2023

Section 16 of the CGST Act, 2017 deals with the eligibility and conditions for taking input tax credit. This section is crucial for businesses as it determines how they can claim credit for taxes paid on inputs.

Key Eligibility Conditions

• The registered person must have a valid tax invoice or debit note
• The goods or services must have been received
• The supplier must have actually paid the tax to the government
• The recipient must have filed their GST returns

Recent Updates 2023

As per recent amendments:

• ITC can be claimed only if the details are furnished by the supplier in GSTR-1
• Time limit for availing ITC is now extended to the due date of filing return for September following the end of financial year
• New rule for matching ITC with GSTR-2B has been implemented

Time Limit for ITC Claims

The last date for claiming Input Tax Credit for any financial year shall be earlier of:

• Due date of filing return for the month of September following the end of financial year
• Date of filing of annual return