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CA Intermediate · Taxation · Input Tax Credit

Rohit Traders, a registered dealer, purchased goods worth Rs 5,00,000 plus 18% GST on 10 June 2026 and received them in two lots. The tax invoice is dated 10 June 2026. Lot 1 (60%) was received on 20 June 2026 and Lot 2 (40%) on 15 August 2026. Payment was made in full on 1 July 2026. Assuming all other conditions are satisfied, ITC of the Rs 90,000 tax can be claimed as follows:

The whole Rs 90,000 can be claimed in the August 2026 return, because where goods are received in lots or instalments, the registered person becomes entitled to credit only upon receipt of the last lot. Part credit on each lot is not allowed.

  1. ARs 54,000 in the return of June 2026 and Rs 36,000 in the return of August 2026
  2. BRs 90,000 in the return of June 2026
  3. CRs 90,000 in the return of the month in which the last lot is received, i.e. August 2026Correct
  4. DRs 90,000 in the return of July 2026 when payment is made

Explanation

For goods received in instalments, ITC may be taken only upon receipt of the last lot. Last lot is received in August 2026, so entire Rs 90,000 is claimable then. Option A splits credit, which the law does not permit.

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