Input Tax Credit in GST

GST - Goods and Services Tax, India
GST Computation & Accounting

Payment to a Party should be made within 180 days of Issue of Invoice

If not made within 180 Days, then ITC to be Reversed in month 180 days have expired

However, if we make payment later, we can again take this ITC which we have Reversed

Example 1

Suppose we purchased goods from Party on 1 May but we make payment to party on 1 June

When can we take Input

When do we need to Reverse Input

Example 2

Suppose we purchased goods from Party on 1 May but we make payment to party on 1 Dec

When can we take Input

What is Last date of Making payment to Party

When do we need to Reverse Input

Note

For Taking Input, Goods Receipt is Important

But for calculating 180 days, we consider 180 Days from Date of Invoice and not Goods Receipt Date

Example 3

Goods Sold by A to B on 31 May from shop.

B took the goods to his factory on 5 June

On what date is Input Available?

When do we need to Reverse Input

What is last date of payment

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