Input credit

Ineligible Input tax credit under GST

Following are the goods and services where the GST law has imposed restriction while availing GST input tax credit, primarily called as Ineligible Input tax credit. We will discuss about the extent and eligibility of ITC of these goods and services. 1. ITC for Motor Vehicles is not available. The GST levied on purchase of Motor vehicles and conveyance is an ineligible Input tax credit. However, there are few exception cases where GST credit is available. These are: Dealers who are engaged [...]

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How to utilize GST credit against GST liability

Credit Utilization rule under GST There are three types of GST credit that a person can avail viz. the following: IGST Credit- this is the credit you could avail when you make interstate purchases & IGST is charged on invoice by the seller. CGST Credit- this is the credit you could avail when you make intrastate purchases & CGST is charged on invoice by the seller. SGGT Credit- this is the credit you could avail when you make interstate purchases & SGST is [...]

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Input credit under GST

What is Input credit In simple words taking input credit means taking credit of GST paid on various purchases A registered person is entitled to take credit of GST charged on purchase of goods or services which are used or intended to be used in the course or furtherance of his business The said amount shall be credited to the electronic credit ledger of such person. Conditions for taking Input credit 1. You must possess a tax invoice or debit note issued by a [...]

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