1. GST & YOU

2. Input Tax Credit under GST

3. What is Input Tax Credit
Input Tax Credit is commonly known as ITC.
ITC is a machenism, by which one can offset the output tax liability against the Input Tax already paid on Purchases of Good and/ or Services.
In GST, Input Tax Credit is available on IGST, CGST and SGST.
GST provides seamless flow of ITC from the manufacturer of goods till it consumed.
ITC is available on the expenses incurred for the furtherence of the business.

4. Conditions to avail Input Tax Credit
You should have a valid Tax Invoice/ Debit Note/ Credit Note issued by registed person.
Goods and/ or Services should be received.
Tax has been paid to Government by Supplier.
You and Your Supplier must have filed monthly return GSTR-3.
It shall deemed that the taxable person has received the goods before or during the movement of goods by the way of transfer of documents.

5. How to avail Input Tax Credit
CGST - ITC
IGST
CGST
SGST - ITC
SGST
IGST
IGST- ITC
IGST
SGST
CGST

6. How to avail Input Tax Credit
Ratna Steels
Delhi
TAX INVOICE
Item Name
Qty
Rate
Amount
Spare Parts 6
1500
9000 9%
810 9%
Total Amount
10620
Vishnu Motors
Delhi
Dayal Motors
Punjab
Outward Supply
Outward Supply
Inward Supply
Super Cars Ltd
Delhi
Total Input Tax
CGST
810
SGST
TAX INVOICE
Item Name
Qty
Rate
Amount
Spare Parts 4
2000
8000 9%
720 9%
Total Amount
9440
Total Output Tax
CGST
720
SGST
IGST
TAX INVOICE
Item Name
Qty
Rate
Amount
Spare Parts 2
2000
4000
18%
720
Total Amount
4720

7. How to avail Input Tax Credit
Ratna Steels
Punjab
TAX INVOICE
Item Name
Qty
Rate
Amount
Spare Parts 6
1500
9000
18%
1620
Total Amount
10620
Vishnu Motors
Delhi
Dayal Motors
Punjab
Outward Supply
Outward Supply
Inward Supply
Total Input Tax
IGST
1620
TAX INVOICE
Item Name
Qty
Rate
Amount
Spare Parts 4
2000
8000 9%
720 9%
Total Amount
9440
Super Cars Ltd
Delhi
Total Output Tax
IGST
720
CGST
SGST
TAX INVOICE
Item Name
Qty
Rate
Amount
Spare Parts 2
2000
4000
18%
720
Total Amount
4720

8. Outward Supplies Register
Ratna Steels Portal
Super Cars Ltd Portal
Ratna Steels GSTR-1A
In.No
Amt
GST
Ratna Steels
Outward Supplies Register 6
1,00,000
18,000 No
Qty
Amt
GST 6
100
1,00,000
18,000 7 50
50,000
9,000
MAY 10
MAY 15
MAY 21
MAY 16
MAY 20
MAY 11 8 25
25,000
4,500
Super Cars Ltd GSTR-1 10 50
50,000
9,000
Ratna Steels GSTR-1
Tot.
225
2,25,000
40,500
Payment
Payment
Ratna steels
Super Cars Ltd
Rev Automobiles 6
1,00,000
18,000
Inward Supplies Register
Books of Super Cars Ltd for April
Outward Supplies Register No
Qty
Amt
GST No
Qty
Amt
GST 6
100
1,00,000
18,000 6
100
1,00,000
18,000 6
100
1,00,000
18,000 1 80
88,000
15,840 1 80
88,000
15,840 7 50
50,000
9,000 2 60
66,000
11,880 2 60
66,000
11,880 8 25
25,000
4,500 3 30
33,000
5,940 3 30
33,000
5,940 10 50
50,000
9,000 4 45
49,500
8,910 4 45
49,500
8,910
Tot.
225
2,25,000
40,500 6
1,00,000
18,000
Tot.
215
2,36,500
42,570

9. ITC 1 – Input Tax Credit Confirmation
JULY 2017
AUGUST 2017
SEPTEMBER 2017
OCTOBER 2017
Return - July
Return - August
Return - September
GSTR – 1 (10th Aug)
Outward Supplies
25000
GSTR – 1 (10th Sep)
Outward Supplies
15000
Transaction - July
GSTR – 1 (10th Sep)
Outward Supplies
8000
Inwards Supplies
Outward Supplies
Bill
Supplier
GST
Customer 6
Ratna Steel
5000 1
Vishnu Motors
25000 10
GSTR – 2 (15th Aug)
Inward Supplies
10000
GSTR – 2 (15th Sep)
Inward Supplies
6000
GSTR – 2 (15th Sep)
Inward Supplies
4000
GSTR – 3 (20th Aug)
Outward Tax Liability
25000
Input Tax Credit
10000
Tax Paid
15000
GSTR – 3 (20th Sep)
Outward Tax Liability
15000
Input Tax Credit
6000
Tax Paid
9000
GSTR – 3 (20th Sep)
Outward Tax Liability
8000
Input Tax Credit
4000
Bill No. 6 got mismatch between Ratna Steel and Super Car Ltd.
Ratna Steel did not upload that invoice in his GSTR 1
Ratna Steel did not accept that in GSTR 1A generated by portal.
ITC Details (21st Aug)
ITC 1 Confirmation
5000
ITC Details (21st Sep)
ITC 1 Confirmation
6000
Tax Paid
9000
ITC 1A Mismatch for JUL
5000
ITC 1A Mismatch for JUL
5000
ITC Details (21st Sep)
ITC 1 Confirmation
4000
Transaction - August
Transaction – September
AUGUST 2017
Inwards Supplies
Outward Supplies
Bill
Supplier
GST
Customer 7
Ratna Steel
6000 2
Vishnu Motors
15000
SEPTEMBER 2017
Inwards Supplies
Outward Supplies
Bill
Supplier
GST
Customer 7
Ratna Steel
4000 2
Vishnu Motors
8000

10. Conditions when ITC can’t be availed
Registration not applied for within 30 days from the date on which you become liable to register.
On goods and services taken from Composite dealer.
Service received but payment has not been done in 3 months. This will be reversed and added as output tax liability to the recipient of such goods and services along with interest.

11. Conditions when ITC can’t be availed
On goods and services used for making exempt supplies.
EXEMPTED
[Covered under GST]
TAXABLE
Goods
Inward Supply
Super Cars Ltd
Delhi
Outward Supply
NON TAXABLE
[Not covered under GST]
TAXABLE
Services
ZERO RATED
[Export, SEZ]

12. Conditions when ITC can’t be availed
On goods and services not consumed for outward supplies.
FREE SAMPLES
TAXABLE
Goods
GIFT
Inward Supply
Super Cars Ltd
Delhi
Disposed as
PERSONAL CONSUMPTION
STOLEN
TAXABLE
Services
DESTROYED
LOST

13. Conditions when ITC can’t be availed
Food beverages, Outdoor catering, beauty treatment, health services, plastic surgery.
TAXABLE
Goods
DOES NOT FALL UNDER THE SAME CATEGORY OF GOODS
Inward Supply
Super Pvt Ltd
Delhi
Outward Supply
TAXABLE
Services
DOES NOT FALL UNDER THE SAME CATEGORY OF SERVICES

14. Conditions when ITC can’t be availed
On motor vehicle and other conveyance
FURTHER SUPPLY OF SUCH VEHICLE
Inward Supply
Super Pvt Ltd
Delhi
Not used in
TAXABLE
Purchase of
Motor
Vehicle
TRANSPORTATION OF PASSENGERS
TRANSPORTATION OF GOODS
IMPARTING TRAINING ON DRIVING SUCH VEHICLE
SUPPLY OF GOODS AND SERVICES

15. Conditions when ITC can’t be availed
On the purchase of Capital Goods
Inward Supply
Super Pvt Ltd
Delhi
Depreciation
TAXABLE
Purchase of
CAPITAL Goods
IF CALCULATED ON THE VALUE INCLUDING THE TAX PAID ON PURCHASE

16. Exceptional Scenarios to avail ITC
Switching from Composition scheme to Regular Dealer.
When Exempted goods and/ or Services become taxable.
When goods and/ or service partly used for business and partly for other purpose.
When goods and/ or services are used partly for taxable supplies and partly for Exempt supplies.
When goods are received in lots or instalments.

17. Thank You !