Following are the necessary conditions to avail GST Input Tax Credit:
- The taxpayer should be registered under GST.
- The receiving party must have received goods or services or a mix of both
- A tax invoice or a debit note should be available that clearly mentions the total amount along with the GST amount paid to the Supplier
- The Supplier should have filed his GSTR-1 return accurately and on time on the GST portal for the transaction with the purchaser.
- If goods or services are received in parts (instalments), ITC is to be claimed based on the tax invoice of the last instalment.
- No ITC claim shall be considered valid where ITC is included in the cost of capital goods and depreciation on it is claimed (as per Section 16 sub-section (3) of the CGST Act of 2017)
- The buyer should complete the payment for the supplies (including GST) to the Supplier within 180 days from the date of invoice issuance.