Hurdles to be crossed for availing input tax credit

 


Hurdles to be crossed for availing input tax credit

·       Section 16(1) and (2) – Check condition for availment of ITC

·       Section 17(5) Check eligibility

·       GSTR-2A/2B invoice details reconciliation

·       Payment by vendor – Follow up with vendor whether he filed GSTR-3B and paid GST of invoice issued.

·       Rule 36(4) restriction 105% of eligible ITC in GSTR-2A

·       Rule 42 and 43

·       Rule 86B Restriction for payment of taxes (50 lakhs) through ITC maximum 99%

·       Rule 86A Check whether ITC is blocked or not by officer.

·       Appoint an entire team for above procedure instead of doing business!

 

Isn’t it is so easy to avail ITC?

One may think to expense the ITC itself.

it has become more direct tax rather than indirect tax – Credit has lost its presence itself under GST.

 


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