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

Under Section 41(1) of the CGST Act, 2017 as presently in force, how does a registered person avail the credit of eligible input tax?

A registered person avails eligible input tax credit as self-assessed in his return, subject to prescribed conditions and restrictions. The amount is then credited to his electronic credit ledger. No prior approval from an officer is needed under Section 41(1).

  1. ABy self-assessment in his return, after which the amount is credited to his electronic credit ledgerCorrect
  2. BOnly after the proper officer verifies and approves each claim
  3. COnly after the supplier's tax is confirmed by an order of the Appellate Authority
  4. DBy filing a separate refund application for each invoice

Explanation

Section 41(1) entitles every registered person, subject to prescribed conditions and restrictions, to avail eligible input tax credit as self-assessed in his return. The amount is credited to the electronic credit ledger. No officer approval or separate application is required.

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