Understand your ITC before adjustment

 

Understand your ITC before adjustment




  • Input Tax Credit under CGST/SGST | Section 16 to 21 | Rules 36 to 45

 

  • ITC cannot be adjusted to payoff liability under reverse charge 9(3) or 9(4)

 

  • RCM paid on the GTA services can be claimed.

 

  • Export of goods and services are not exempted – we can avail ITC.

 

  • Reversal of ITC where payment is not made within 180 days from the date of invoice.

 

  • Never Avail ITC on supplies specifically blocked u/s 17.

 

  • Never Avail credit when the same is restricted by rate notification.

 

  • Never Avail ITC merely on receipt of invoice without actual receipt of goods/services

 

  • Reverse proportionate ITC in respect of exempted supplies, non-business purpose use

 

  • Avail ITC on bank charges

 

  • Reverse of ITC in respect of goods lost, stolen, destroyed, written off or distributed as gifts/free samples.

 

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