Time limit for availing input tax credit

Input Tax Credit under GST

The time limit to avail GST ITC :

ITC can be availed by a registered taxable person in a specific manner and within a specified time frame. There are different situations wherein the inputs can be claimed for semi-finished goods or stock or finished goods.

  • If a person has applied for registration or is liable to register or is granted registration: The day from when he is liable to pay taxes.
  • When a person takes voluntary registration: When is going for registration i.e the “Registration Day”.
  • When a taxable registered person stops paying taxes in composition levy scheme: As per Sec 7, the day when he is liable to pay taxes under the Act in a normal manner.

Input Tax Credit under GST

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Input Tax Credit can be claimed for all the above-mentioned situations if the time period doesn’t exceed one year i.e 365 days from the date of tax invoice date of that particular goods and services which known as supply in GST regime.

For Any other cases (if any): ITC can be claimed by the Registered person, no ITC get waste for the Registered person in GST.

  • As per Sec 27 “Returns”, the ITC must be claimed before the Registered person file a valid return for the month of September, days after the end of financial year to which the invoice is related, or
  • As per Sec 30 Annual Return, the ITC must be claimed before the Registered person file a valid annual return. The due date of the annual return in GST is December 31, after the end of the F.Y.

A registered person will be eligible to claim Input Tax Credit (ITC) on the fulfillment of the following conditions:

  1. Possession of a tax invoice or debit note or document evidencing payment
  2. Receipt of goods and/or services
  3. Goods delivered by the supplier to other people in the direction of the registered person against a document of transfer of title of goods
  4. Furnishing of a return
  5. Where goods are received in lots or installments ITC will be allowed to be availed when the last lot or installment is received.
  6. Failure to the supplier towards the supply of goods and/or services within 180 days from the date of invoice, ITC already claimed will be added to output tax liability and interest to pay on such tax involved. On payment to the supplier, ITC will be again allowed to be claimed
  7. No ITC will be allowed if depreciation has been claimed on tax component of a capital good
  8. If invoice or debit note is received after
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