How the Input Tax Credit under GST in India can be Used – Claim & Calculation

It is always very calculative to register GST as there are many benefits, one among such benefits is Input tax credit. This input tax is a very essential factor registered taxpayers. Though there is time limit with due date mentioned to file the GST for every succeeding financial year. The due date is in the September month of every financial year. The following article enumerates on how input tax credit can be used under claim and calculation.
Every person who done GST Registration can avail input tax credit

Conditions for availing input tax credit by a registered taxpayer

1 The taxpayer should possess a valid tax invoice or debit note issued by the supplier
2 The taxpayer should have received the Goods / Services or both
3 The supplier should have paid GST to the Government
4 The supplier should have filed GST Returns
5 The taxpayer should pay the supplier within 180 days from the date of issue of invoice

Time Limit for availing Input Tax Credit

Input tax credit pertaining to a financial year should be availed within due date of Filing GST Returns for the month of September of succeeding Financial Year or date of filing annual return, whichever is earlier

Blocked credits

Input Tax Credit is not available in respect of following Goods / Services
1 Motor vehicles for transportation of persons with seating capacity of less than or equal to 13 persons except when they are used for
further supply of such vehicles or conveyances
making taxable supply of transportation of passengers
Imparting training on driving such motor vehicles
2 Vessels and aircraft except when they are used for
further supply of such vessels or aircraft
making taxable supply of transportation of passengers
Imparting training on navigating/flying such vessels/aircraft
Transportation of goods
3 General insurance, servicing, repair and maintenance relating to Motor vehicles, vessels and aircrafts on which ITC is not allowed
4 Foods and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where they are used for making an outward taxable supply of same category of Goods / Services.
5 Membership of a club, health and fitness centre
6 Rent a cab, life insurance and health services except where
Such services are to be mandatory provided by an employer to employee as per Government notification
They are used for providing outward taxable supply of same category of goods or services or both
7 Leave travel benefits extended to employees
8 Works contract services for construction of an immovable property except where it is an input service for further supply of works contract service
9 Goods or services or both received by a taxable person for construction of an immovable property even if it is in the course / furtherance of business
10 Goods / Services procured from a composition taxpayer
11 Goods / Services received by a non resident taxable person except on goods imported by him
12 Goods / Services used for personal consumption
14 ITC will not be available for any tax paid due to fraud cases. Fraud cases include fraud or wilful misstatements or suppression of facts or confiscation and seizure of goods.

Order of adjustment of ITC

1 ITC of IGST should be first utilized towards payment of IGST
2 Remaining ITC of IGST can be utilized towards payment of CGST and SGST/UTGST in any order
3 ITC of CGST and SGST/UTGST can be utilized towards payment of IGST, CGST and SGST/UTGST only after the ITC of IGST has first been utilized fully
4 ITC of CGST should be first utilized towards payment of CGST
5 Remaining ITC of CGST can be utilized towards payment of IGST
6 ITC of SGST should be first utilized towards payment of SGST
7 Remaining ITC of SGST can be utilized towards payment of IGST
8 CGST ITC balance cannot be utilized towards payment of SGST and vice versa

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