MAXIMUM TIME LIMIT TO TAKE INPUT TAX CREDIT

INPUT TAX CREDIT

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MAXIMUM TIME LIMIT TO TAKE INPUT TAX CREDIT

Maximum time limit to take ITC in respect of supply of goods and/or services is within 1 year from date of issuance of tax invoice.

Time limit to take ITC shall be earlier of:

  • Furnishing of return for the month of September following the end of financial year to which such invoice or debit note pertains OR
  • Furnishing of annual return (31st December following the end of financial year)

CONDITIONS FOR TAKING INPUT TAX CREDIT (ITC)

Taxable person can claim ITC only if the ALL the following conditions are satisfied:

  • he is in possession of tax invoice or debit note or such other tax paying document
  • he has received the goods and/or services
  • the tax charged has been actually paid to the credit of the Government, either in cash or through utilization of ITC.
  • he has furnished the return u/s 34

From the above conditions it is clear that to claim ITC, you must be in possession of invoice, debit note and have actually received goods or services.  So it is clear from the provision that ITC is not available on advance payment.

Where goods are received in lots or installments, taxable person shall be entitled to the credit upon receipt of the last lot or installment.


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