Conditions made to claim Input tax credit

The enrolled individual will be qualified for ITC on an inventory in particular if ALL the accompanying four conditions are satisfied:

  1. Possession of tax paying document [Section 16(2)(a) read with rule 36 of the CGST Rules]

ITC can be benefited based on any of the accompanying documents:

I) Invoice issued by a provider of goods or services

ii) Invoice issued by beneficiary (getting goods or services from unregistered provider) alongside confirmation of payment of tax (if there should arise an occurrence of reverse charge)

iii)A debit note issued by provider

iv) Bill of entry or similar document recommended under Customs Act

v) Revised invoice

vi) Document issued by Input Service Distributor

The documents premise which ITC is being taken ought to contain atleast the accompanying details:


  • Measure of tax charged
  • Describing goods or services
  • All out estimation of supply of goods as well as services
  • GSTIN of the provider and beneficiary
  • Place of supply in case of inter State supply


No ITC of tax paid towards requests including fraud [Rule 36(3)]:

Tax paid in compatibility of any order where any demand has been affirmed because of any fraud, resolved error or concealment of facts can’t be benefited as ITC


  1. Receipt of the goods and/or services [Section 16(2)(b)]

The registered individual taking the ITC probably got the goods and/or services.

“Bill to Ship to” Model likewise included:

Under this model, the goods are delivered to an outsider on the direction of the client (registered individual) who buys the products from the seller (provider) i.e., the client (registered individual) who buys such goods doesn’t get the said goods.

However, in such a situation, section 16(2)(b) regards that the enlisted individual (client) has received the products. In other term, delivery of products to someone else on the direction of the enlisted individual by method for transfer of docs of title to goods or generally either previously or during the movement of products, is regarded to be the receipt of products by the enrolled person. So, ITC will be accessible to the enrolled person on whose request the products are delivered to a third person.

For Example – A will be a person who puts in a request on B for a consignment of soda ash. A gets a purchasing order from C for similar amount of soda ash. An educates B to deliver the products to C, and thus he raises an invoice on C. Despite the fact that the goods are not physically received at the premises of A, section 16(2)(b) permits ITC of the products to A.


  1. Tax leviable on stock really paid to Government [Section 16(2)(c)]

Tax ought to really have been paid, with cash or through usage of ITC, on the goods and/or services for which ITC is being taken.


  1. Filing of return [Section 16(2)(d)]

The registered individual taking the ITC must have filed his return under section 39.

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