Eligibility for taking Input Tax Credit (ITC) [Section 16(1) of CGST Act] - GST Ready Reckoner - GST

Eligibility and Conditions for taking Input Tax Credit (ITC) Eligibility criteria for Taking Input Tax Credit - Section 16(1) of CGST Act Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49 of CGST Act, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. Important Notification Clarification Availability of input tax credit on demo vehicles in cases where such vehicles are capitalized in the books of account by the authorized dealers. [ See para 5 of Circular No. 231/25/2024-GST dated 10.09.2024 ] A registered person), who are corporate debtors under the provisions of the Insolvency and Bankruptcy Code, 2016 undergoing the corporate insolvency resolution process and the management of whose affairs are being undertaken by interim resolution professionals (IRP) or resolution professionals (RP), as the class of persons who shall follow the following special procedure, from the date of the appointment of the IRP/RP till the period they undergo the corporate insolvency resolution process. [ See Para 4 of Notification No. 11/2020 Central Tax dated 21.03.2020 ] Clarification in respect of certain challenges faced by the registered persons in implementation of provisions of GST Laws. [ See Circular No. 138/08/2020-GST dated 06.05.2020 ] Issue:- The notification No. 11/2020 Central Tax dated 21.03.2020 specifies that the IRP/RP, in respect of a corporate debtor, has to take a new registration with effect from the date of appointment. Clarification has been sought whether IRP would be required to take a fresh registration even when they are complying with all the provisions of the GST Law under the registration of Corporate Debtor (earlier GSTIN) i.e. all the GSTR-3B s have been filed by the Corporate debtor / IRP prior to the period of appointment of IRPs and they have not been defaulted in return filing. Clarification:- it is clarified that IRP/RP would not be required to take a fresh registration in those cases where statements in FORM GSTR-1 under section 37 and returns in FORM GSTR-3B under section 39 of the CGST Act , for all the tax periods prior to the appointment of IRP/RP, have been furnished under the registration of Corporate Debtor (earlier GSTIN). Clarification on Whether the benefit of zero rated supply can be allowed to all procurements by a SEZ developer or a SEZ unit such as event management services, hotel and accommodation services, consumables etc? [ Circular No. 48/22/2018-GST dated 14.06.2018 ]