Documents required to claim Input Tax Credit under GST

Income Tax Credit is another feature under GST. It is so because GST Council and Government of India decided to remove cascading of taxes. While here cascading of taxes means tax on tax. In addition if you wish to claim ITC or Input Tax Credit then you submit some documents. Besides you check if you are eligible to claim Input Tax Credit or no.

What is GST?

GST is short form for Goods and Services Tax in India which Indian Government implemented on 1st July 2017. And there are three types of taxes under GST. First one is CGST or Central Goods and Services Tax. Second is SGST or State Goods and Services Tax. Whereas third tax is IGST or Integrated Goods and Services Tax.

Further there are some rules according to which you claim ITC. You now keep reading to know more about these rules. You know more about GST enrolment process for different tax payers also.

Points to remember

  • Registered people are able to get credit of tax paid
  • But it is only on inward supply of Goods and or Services (used to grow business)
  • Registered people must have tax invoice or other tax paying document
  • You must receive stated goods and or services
  • You furnished return
  • Supplier actually paid tax
  • In case you receive inputs in instalments or lots then you wait till last lot of input to avail credit
  • You pay supplier value of goods and or services and tax
  • You make payment in 180 days
  • Authorities calculate 180 days from date of invoice issue
  • If you do not do in this manner then credit adds to output tax liability with interest
  • In case amount pays then recipient can get credit again

List of documents to claim Input Tax Credit in GST tax

  • Invoice that supplier of Goods and or Services issues
  • Debit note that supplier issues
  • Invoice that recipient issues and proof of payment of tax
  • Revised invoice
  • Bill of entry under Customs Act or some similar document
  • Document that Input Service Distributor issues

How to claim Input Tax Credit in special circumstances

  • When applicant moves from composition scheme to normal tax payer under GST then you claim ITC. However it is only on input held in capital goods, stock, or semi finished and finished goods in stock. While it is one day before applicant becomes liable to pay tax as normal tax payer
  • Apart from this if goods and or services is exempt and it becomes taxable supply then in such cases applicant claims ITC. However it is only on input in capital goods or stock or finished or semi finished goods used for supply

Points to remember

  • All registered people must file GST ITC-01 form on common portal
  • Moreover you file form in 15 days after becoming eligible for claiming ITC
  • In addition either Chartered Accountant or Cost Accountant must certify GST ITC 01 Form
  • While it is only when aggregate ITC of SGST, CGST and IGST is above Rs. 2 lakhs

Claim Input Tax Credit under GST procedure

There is simple process to claim input credit under GST. However for this you must have tax invoice of purchase or debit note. In addition you should get your goods and or services. Furthermore supplier must pay or deposit tax to government. These are tax charges on purchases. Finally supplier already filed GST returns.

Hence you know about how to claim Input Tax Credit under GST. You also came to know GST Input Tax Credit rules. While you are clear about ITC on capital goods under GST. However only proper documents will help you to claim Input Tax Credit in GST. In addition you know how to calculate Input Tax Credit under GST with example.

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