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TMI BlogINPUT TAX CREDITX X X X Extracts X X X X X X X X Extracts X X X X ..... services and capital goods. 17.3 In terms of Section 16(1) of the CGST Act, 2017, a registered person is entitled to take credit of input tax charged on supply of goods and/or services to him, which are used or intended to be used in the course or furtherance of business, on the basis of the Tax Invoice or Debit Note or Bill of Entry or Input Service Distributor invoice or any other prescribed document. 17.4 The following four conditions are to be satisfied by the registered taxable person for obtaining ITC: (a) He is in possession of Tax Invoice or Debit Note, Bill of Entry or Input Service Distributor invoice; (b) He has received the goods and/or services; (c) The supplier has actually paid the tax charged in respect of the suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere the goods have been delivered to a person other than taxable person (third person) it would be deemed that the registered taxable person has received the goods though the goods have been delivered to a third party on the direction of such taxable person. ITC will be available to the person on whose order the goods are delivered to third person, i.e. the said taxable person. Same is the case with services. 17.9 As per Section 16(4) of the CGST Act, 2017, a registered person cannot take ITC in respect of any invoice or debit note for supply of goods or services after 30th November following the end of financial year to which such invoice or debit note pertains or furnishing of the relevant Annual Return, whichever is earlier. 17.10. (In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .13 Section 17(5) of the CGST Act, 2017 prescribes certain input goods and input services on which ITC is not admissible. These input goods and input services are mainly items of personal consumption, inputs used in construction of an immovable property (except plant and machinery), telecommunication towers, pipelines laid outside the factory premises, etc. ITC is also not admissible on taxes paid as a result of detection of evasion of taxes. 17.14 ITC is also not admissible on goods lost, stolen, destroyed or written off. In addition, ITC with respect of goods given as gifts or free samples are also not allowed. 17.15 A person applying for registration can take input tax credit of inputs held in stock and inputs contained in semi-finishe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... UT tax, in that order; (b) The Central/State/UT tax shall first be utilised towards payment of Central/State/UT tax and the amount remaining, if any, may be utilised towards the payment of Integrated tax; (c) The input tax credit on account of State/UT tax shall be utilised towards payment of Integrated tax only where the balance of the input tax credit on account of Central tax is not available for payment of Integrated tax; (d) The input tax credit on account of Central tax, State tax or Union territory tax shall be utilised towards payment of Integrated tax, Central tax, State tax or Union territory tax, only after the input tax credit available on account of Integrated tax has first been utilised fully towards such payment. (e) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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