What are the types of Input Tax Credit (ITC) calculated?
Input Tax Credit can be of the following types:
If the tax paid on the purchase of inputs, capital goods, and input services from another State (Inter-State)
Input Tax Credit of IGST
If tax paid on purchase of inputs, capital goods and input services from the same State (Intra-State)
Input Tax Credit of CGST
Input Tax Credit of SGST
Input Tax Credit of UTGST
How to calculate Input Tax Credit available?
Input Tax Credit can be calculated from the following sources:
Balance of Electronic Credit Ledger – The Input Tax Credit of IGST, CGST and SGST of earlier months would be reflected in the E-Credit Ledger of a registered dealer on GST Common Portal. This amount is used to calculate the payment for output tax.
Inward Supplies received – Tax Invoice issued to a buyer when they make a purchase reflects the amount of IGST or CGST & SGST charged. This is the Input Tax Credit that the buyer can claim towards payment of taxes on outward supplies made by him.
How to adjust available Input Tax Credit calculated?
Input Tax Credit of IGST should be claimed first against Output IGST, the balance can then be claimed against Output CGST and then against Output SGST.
Input Tax Credit of CGST should be claimed first against Output CGST and then against Output IGST. It cannot be used for paying Output SGST.
Input Tax Credit of SGST shall be claimed first against Output SGST and then against Output IGST. It cannot be used for paying Output CGST.
What is the time limit to claim input tax credit calculated?
To claim the Input Tax Credit the buyer should pay the supplier within 180 days from the date of issue of the invoice. Input Tax Credit calculated cannot be claimed:
On expiry of one year from the date of issue of tax invoice.
After filing of return for month of September of the next financial year.
After filing of Annual Return (due date: 31st December of next financial year).