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CS Executive · Tax Laws and Practice · Input Tax Credit and Computation of GST Liability

Under the CGST Act, 2017, which one of the following is among the conditions that a registered person must satisfy before taking input tax credit on a supply received by him?

A registered person must have received the goods or services or both to claim input tax credit. This is one of the conditions in section 16(2), along with holding a tax invoice, tax being paid to the Government and filing the return. Advance payment or officer approval is not required.

  1. AHe has received the goods or services or bothCorrect
  2. BHe has paid the supplier's invoice value in advance of the supply
  3. CHe has obtained a certificate from the jurisdictional tax officer approving the credit
  4. DHe has filed the annual return for the preceding financial year

Explanation

Section 16(2) requires, among other things, possession of a tax invoice or debit note, receipt of the goods or services, tax actually paid to the Government, and furnishing of the return under section 39. Advance payment, officer approval and the earlier year's annual return are not conditions. Hence receipt of the goods or services is the correct condition.

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