Input Tax Credit – A New era, A Nightmare

Mechanism of claiming Input (ITC) in GST w.e.f 1st October 2022

Various amendments were proposed to be made in the GST law, in the Finance Budget 2022. These proposals for amendment of various sections have now been made effective from 1st day of October 2022 vide Notification 18/2022-CT dated 29.09.2022.

After the enactment of these amendments, claiming of Input Tax Credit shall become nightmare. Amendments made in relation to Input Tax Credit (ITC) are summarised as below:

New condition for claiming ITC [Section 16 – New clause inserted]

Section 16 of the CGST Act which delas with eligibility and conditions for claiming ITC provides 5 specific conditions in section 16(2) which are as below:

• (a) The taxpayer is in possession of tax invoice or debit note;
• (aa) The detail of above invoice / debit note is communicated in GSTR 2B of the taxpayer; Ads by Ads by
• (b) The taxpayer has received that goods or service;
• (c) The supplier has made payment of GST applicable on such supply;
• (d) The taxpayer has claimed ITC and furnished its return.

Source Taxguru

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