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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Input Tax Credit and Computation of GST Liability

Section 16(2)(ba) of the CGST Act, 2017 makes credit available only if which of the following is true?

Credit is available only if the details of input tax credit communicated to the recipient under section 38 have not been restricted. This links the recipient's entitlement under section 16(2)(ba) to the auto-generated statement made available to the recipient.

  1. AThe details of ITC communicated to the recipient under section 38 have not been restrictedCorrect
  2. BThe recipient has paid the supplier within thirty days of the invoice
  3. CThe recipient has obtained an advance ruling on the supply
  4. DThe supplier is a registered person with a turnover above the prescribed limit

Explanation

Clause (ba) requires that the details of input tax credit in respect of the supply, as communicated to the registered person under section 38, have not been restricted. The thirty-day payment and advance ruling conditions do not appear in section 16(2). The 180-day payment rule appears in a proviso and is a different requirement.

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