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

Which of the following is a condition that section 16(2) of the CGST Act, 2017 lays down for a registered person to be entitled to input tax credit?

Furnishing the return under section 39 is a statutory condition for credit. Section 16(2)(d) bars credit unless the recipient has filed that return. The other options, such as a cash payment in 30 days or an officer's certificate, appear nowhere in section 16(2).

  1. AHe has furnished the return under section 39Correct
  2. BHe has filed the annual return for the preceding year
  3. CHe has paid the supplier in cash within 30 days
  4. DHe has obtained a certificate from the jurisdictional officer

Explanation

Section 16(2)(d) requires that the person has furnished the return under section 39. No condition requires the preceding year's annual return, payment in cash within 30 days, or an officer's certificate. The payment rule is a 180-day limit with reversal, not a 30-day cash condition.

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