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CA Intermediate · Taxation · Input Tax Credit

Mehta Enterprises, a registered trader in Surat, purchased goods worth Rs 2,00,000 plus 18% GST on 10 March 2026 and received the tax invoice. The goods were received in two lots: the first lot, with 60% of the value, in March 2026, and the second lot in April 2026. The supplier has filed his returns and paid the tax. Which statement about Mehta's ITC is correct?

Mehta can claim the full Rs 36,000 ITC in the April 2026 period. When goods are supplied in lots or instalments, receipt is deemed to occur on delivery of the last lot, so credit on the invoice is taken only then and not lot by lot.

  1. AFull ITC of Rs 36,000 can be claimed in the April 2026 return period, when the last lot is receivedCorrect
  2. BITC on 60% can be claimed in March 2026 and the balance in April 2026, lot by lot
  3. CITC can be claimed in the March 2026 return period for the full amount, as the invoice is dated in March
  4. DITC is not available because goods were received in lots

Explanation

Where goods are received in instalments, the recipient is deemed to have received the goods on receipt of the last lot. ITC for the whole invoice is therefore available when the last lot arrives, in April 2026. Lot-wise credit is not permitted.

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