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Clarification and Conditions for claiming ITC under GST


I see many taxpayers are asking for clarification whether ITC can be availed only when supplier uploads his GSTR 1. Or do receiver must see such invoices in GSTR 2? .

As per CGST section 16 one can avail ITC only when below conditions gets fulfill:
1. you must have possession of invoice
2. you must have received goods or services
3.Supplier must pay the tax to the government
4.Receiver must file necessary returns
5. payment must be made to supplier within 180 days
6. No itc on depreciation of tax component.

So, i think everything is very clear except point no. 3. As per above section supplier must pay tax amount to the gov.t so that receiver can take itc. well, in receiver;s case he does not know whether supplier has actually paid the amount to govt. or he has just sent the invoice.
Therefore, a receiver can rely 100% when he see the transactions in GSTR 2A. if he can see the transactions in GSTR 2A, then it is proved that supplier has paid the amount.

However, it is not compulsory that entries should be there in GSTR 2a, then only receiver can take ITC. If supplier has paid the amount to govt. and you have proper invoice then you can take ITC.
The only risk is during audit or any raids by the officials found that the supplier has not paid the tax to the government and receivers have availed ITC then the government will ask receiver to reverse the ITC with interest. I hope this will be useful for availing ITC..you may read more about this topic here..REad more here.https://gstindianews.info/conditions-for-claiming-itchttps://gstindianews.info/conditions-for-claiming-itc/.

Keep Visiting at GST India News for latest updates on GST in India.  Also, keep posting your queries and questions in our GST Discussion forum.   All GST related content is brought to you by GST India News with gst news today live update page.  This article is on gst collection october 2018, gst collection till now and gst revenue collection month wise


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