March 21, 2023

All About “Availment of ITC” under GST

ITC (Input Tax Credit) is a key feature of GST (Goods and Services Tax) that allows registered taxpayers to claim credit for the taxes paid on their purchases, which can then be used to offset the taxes payable on their sales. The process of claiming ITC is known as "Availment of ITC". Here are some key aspects of Availment of ITC under GST:

1. Conditions for Availing ITC: A taxpayer can avail ITC only if certain conditions are met, such as possessing a valid tax invoice, debit note or other prescribed documents, the goods or services must have been received, and the tax charged on such supply has been actually paid to the government by the supplier.

2. Eligibility of Input Tax Credit: A taxpayer can claim ITC for taxes paid on inputs, input services, and capital goods. The ITC claim should be in accordance with the rates specified under GST law, and it is not available for certain goods and services specified under Section 17(5) of the CGST Act.

3. Time Limit for Availing ITC: ITC can be claimed by a taxpayer in their monthly or quarterly returns for the period in which the corresponding supply was made. The time limit for availing ITC is restricted to the earlier of the following two dates: the filing of the GST return for the month of September following the end of the financial year to which the invoice pertains, or the date of filing of the annual return for the relevant financial year.

4. Reversal of ITC: If a taxpayer fails to pay their supplier within 180 days from the date of the invoice, the ITC claimed on such invoice must be reversed. Further, if a taxpayer is unable to utilize ITC due to reasons such as exempt supply or non-availability of output tax liability, they must reverse the unutilized ITC.

5. Mixed Supply Levy Post GST


Furnishing of ineligible/blocked ITC & reversal: Form GSTR-3B
Vidhwa Pension Yojana