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Input Tax credit Claiming?

Indirect Taxation

If our company book purchase order to another state located company . Supplier supplies material on the date of 28 the month & Invoice raised on that day but we receive material on 2nd date of next month ,So I entered purchase bill journal passed on 2nd date,.i.e received date . So,which month I can claim the input GST invoice raised month (28) or received date (2) .

Gopireddy Damodharreddy

CA Inter

★ 2K+

02-Feb-21 09:08

287

Answers (5)

Possession of tax Invoice and receipt of goods both are pre-requisites of claiming ITC. Thus 2nd is the eligible date

Sudha Reddy

CA Final

★ 20K+

02-Feb-21 09:44

But supplier accounts ,They file GSTR1 sales return, And it reflect in GST 3 of receiver

Thread Starter

Gopireddy Damodharreddy

CA Inter

★ 2K+

02-Feb-21 11:01

Of supply month

Thread Starter

Gopireddy Damodharreddy

CA Inter

★ 2K+

02-Feb-21 11:02

Based on this return the input Tax credit that a tax payer is eligible to avail is determined

Thread Starter

Gopireddy Damodharreddy

CA Inter

★ 2K+

02-Feb-21 11:12

Thread Starter

Gopireddy Damodharreddy

Based on this return the input Tax credit that a tax payer is eligible to avail is determined

In order to claim ITC, conditions given under section 16 needs to be satisfied. One such condition is â??Good or services must be receivedâ??. If they are not received then credit can be claimed only in the month in which they are received. Even though itâ??s reflecting we should take credit in next month only

Sudha Reddy

CA Final

★ 20K+

02-Feb-21 20:32