Input tax credit
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The document discusses the concept of Input Tax Credit (ITC) under GST, outlining its definition, how to claim it, eligibility conditions, and instances of ineligibility. It specifies requirements for claiming ITC, including possession of tax invoices and tax payments made. Practical examples are provided to illustrate the application of ITC in business transactions.
Input tax credit
- 1. WELCOME TO MY PRESENTATION
- 2. INPUT TAX CREDIT Under the Guidance of SUNDAR B.N. Asst.prof. & Course Co-Ordinator Post-Graduation Studies in Commerce G.F.G.C.W. Holenarasipura. NAYANA H.K 1st M.COM
- 3. CONCEPTS Meaning of input tax credit How to claim input under GST. Conditions to claim input tax credit. In Eligibility of Input tax credit. Requirements for ITC under GST. Reference
- 4. MEANING ;- The tax already paid by a person at the time of purchase of goods or services and which is available as deduction from tax payable. Eg;- A trader purchases goods worth RS.100 and pay tax of 10%. On it and now this trader sold such goods at RS.150 and collect tax of RS.15 from buyer. Now the trader has to pay RS.15 to government but he had already paid RS.10 ,so this RS.10 is ITC of the trader and will be allowed as deduction from tax payable and he has to pay net RS.5 as tax.
- 5. CONDITIONS TO CLAIM ITC Registered person will be eligible to claim ITC.(It following conditions are fulfilled.) He should have received the goods or services or both. The supplied should have actually paid the tax. Furnishing of return. Possession of a tax invoice or debite note or document evidencing payment. No ITC will be allowed if depreciation have been claimed on tax component of a capital goods & plant & machinery. If the invoice or debit note is received. Note;- Missed invoice will not eligible for ITC.
- 6. IN ELIGIBILITY OF INPUT TAX CREDIT 1. Payment for invoice made after 180 days from the date of issue of invoice. 2. Claiming depreciation on taxable capital goods. 3. Goods are to be received in lots/installment. 4. Goods & Services is not used for further course of business.
- 7. REQUIREMENTS FOR ITC UNDER GST Document receives the goods & services from the supplier are required. Document of actual tax paid by the recipient of person (dealer/manufacturer) to the government. proof of GST paid. Proof of copy of GST return is necessary & furnishing of GST return to GST authority.
- 8. PROBLEM Mr. X , a supplier of goods ,pays GST under regular scheme he has made the following outward taxable supplies in a tax period; Particulars Rs Inter state supply of goods 300000 Intra-State supply of goods 800000 Mr ‘X’ has the following ITCs with him at the beginning of the period Particulars Rs CGST 30000 SGST 30000 IGST 70000
- 10. : Retrieved from : G. VEDHAMURTHI 18/05/2022