What is ITC ?
Input GST is also called ITC
Full form is Input Tax Credit
Types of Input GST
INPUT GST IS OF 3 TYPES
- Inputs : - Any goods direct or indirect used for furtherance or business (Example :- Purchase of goods, stationary)
- Capital Goods : - Any Machine or Fixed Asset (Capitalized in books) direct or indirect used for furtherance or business (Example :- Purchase of Machine)
- Input Services : - Any service used for furtherance of business (Example :- Professional services, Audit Fee)
All these can be Directly or Indirectly used in Business
When is the date of Input Available?
Input Available on Date Goods Received in Premises and Not Invoice Date
If goods received in lots, input available on Date Final lot received
When is no Input Tax credit Available in GST?
| Food and Beverages | Execept or same type of service |
| Outdoor Catering | |
| Beauty Treatment | |
| Health Services | |
| Cosmetic and Plastic Surgery | |
| Membership of a Club | |
| Health and Fitness Centre | |
| Rent - a- Cab | except when made obligatory by govt |
| Life Insurance | for same type of service |
| Health Insurance | |
| Travel Benefits (LTC) | |
| Works Contract Services | Except or same type of service |
| Goods or Services on which tax has been paid under section 10(Composition Scheme) | |
| Goods or Services received by a non-resident taxable person | |
| Goods or Services used for personal consumption; | |
| Goods Lost, Stolen, Destroyed, written off or disposed | |
| Tax paid in accordance with the provisions of sections 74, 129 and 130(Tax levied because of fraud, misstatement, confiscation of goods). |
Important points of capital Goods
- All fixed assets are Capital Goods even if not Directly Used for production
-
If Machine Capitalized in books, it is a Capital Goods
If Machine not Capitalized in books, it is Inputs.
Those additions to assets which Increase efficiency of asset beyond its previous capacity are capitalized.
Inputs of Motor Vehicles
Inputs of Motor Vehicles will be available as follows
-
Goods Transport (Example :- Truck, Tempo)
For All Business
-
Passenger Transport (Example:- Car, two-wheeler)
Input Available only to
Car Selling Business
Passenger Transport Business
Motor Driving Training Business
GST Input in Case Payment Not Made
Input Available on Date of Receipt of Goods
But payment should be made within 180 days from date of Invoice
Conditions to Claim Input Tax Credit in GST
- Person should be in possession of Invoice/Debit Note/Other Documents
- He has Received Goods
- Tax Charged has Actually been paid to Government in Cash /Credit
- He has furnished GST Return
What is last Date of Taking Input Tax Credit in GST
Last Date for Taking Input Tax Credit
If we forget to take ITC in current financial year,we can take it in Next Financial Year till Sep Return(GSTR3B) of Next Year
For FY 2017-18(1 Apr 2017 to 31 mar 2018),we can take it till Sep 2018
This has been extended to March 2019 GSTR3B Return for FY 2017-18
(whose due date was 20 23 Apr 2019)
However for fy 2018-19,it has not been extended yet
So it is Sep 2019 GSTR3B Return which is 20 Oct 2019
As per Section 16 of GST
Last Date of Taking Input Tax Credit is
- Due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or
- furnishing of the relevant annual return, whichever is earlier.
