Document and Forms for Claiming ITC under GST

In this article, we will provide you with a comprehensive guide on how to claim Input Tax Credit (ITC) under the Goods and Services Tax (GST) regime. We will also explain the necessary documents and forms required to claim ITC and the steps involved in claiming ITC in special circumstances.

What is Input Tax Credit (ITC)?

ITC is the credit that a registered taxpayer can claim against the GST paid on the purchase of goods or services used in the course of business. In simple terms, ITC is the credit for the GST paid on the purchase of inputs that can be used to reduce the GST liability on the output supplies.

Documents Required for Claiming ITC under GST

Following are the documents required to claim ITC under GST:

Invoice or Debit Note issued by the supplier of goods or services
Bill of Entry or Import Declaration for the import of goods
Input Service Distributor (ISD) invoice or ISD Credit Note
Delivery Challan for the transfer of goods from one place to another
Payment voucher or self-invoice for the reverse charge supplies
Documentary evidence for the payment of tax and interest

Forms for Claiming ITC under GST

Following are the forms required to claim ITC under GST:

GSTR-2A: This form shows the details of all the invoices uploaded by the suppliers in their GSTR-1. It is an auto-populated form and can be accessed by the taxpayer on the GST portal.
GSTR-2B: This form shows the details of all the invoices uploaded by the suppliers in their GSTR-1 and GSTR-5. It is also an auto-populated form and can be accessed by the taxpayer on the GST portal.
GSTR-3B: This is a monthly return filed by the taxpayer to declare the summary of all the inward and outward supplies along with the tax liability and payment of tax.
GSTR-9: This is an annual return filed by the taxpayer to declare the summary of all the inward and outward supplies along with the tax liability and payment of tax for the entire financial year.

Steps for Claiming ITC in Special Circumstances

Following are the steps involved in claiming ITC in special circumstances:

1. ITC on Inputs and Capital Goods sent for Job Work

If the taxpayer sends the inputs or capital goods to a job worker for further processing, then he can claim ITC on such inputs or capital goods even if they are not received back within 1 year from the date of sending.

2. ITC on Inputs and Input Services used for Exempt Supplies

If the taxpayer is engaged in the supply of both taxable and exempt supplies, then he can claim ITC only on the inputs and input services used for the taxable supplies. He cannot claim ITC on the inputs and input services used for the exempt supplies.

3. ITC on Inputs and Input Services used for Non-Business Purposes

If the taxpayer uses the inputs or input services for non-business purposes, then he cannot claim ITC on such inputs or input services. He can claim ITC only on the inputs or input services used for the business purposes.

4. ITC on Inputs and Input Services used for Personal Use

If the taxpayer uses the inputs or input services for personal use, then he cannot claim ITC on such inputs or input services. He can claim ITC only on the inputs or input services used for the business purposes.

5. ITC on Inputs and Input Services used for Free Samples or Gifts

If the taxpayer gives free samples or gifts of his goods or services, then he cannot claim ITC on the inputs or input services used for such free samples or gifts.

6. ITC on Inputs and Input Services used for Renting Immovable Property

If the taxpayer is engaged in renting immovable property, then he cannot claim ITC on the inputs or input services used for such renting of immovable property.

7. ITC on Inputs and Input Services used for Non-Resident Taxable Persons

If the taxpayer is supplying goods or services to a non-resident taxable person, then he can claim ITC on the inputs or input services used for such supplies.

Conclusion

Claiming ITC under GST can be a complex process, especially in special circumstances. However, by following the above steps and providing the necessary documents and forms, a taxpayer can easily claim ITC and reduce his GST liability.