Input tax credit entitlement requires invoice, receipt, tax payment and timely return; reversed if recipient fails payment within prescribed period.

Registered persons may claim input tax credit for supplies used in business only if they hold a tax invoice or prescribed document from a registered supplier, have received the goods or services (including deemed receipt on delivery or transfer of title), the tax has been paid to Government (in cash or by admissible credit), and they have filed the prescribed return; credits for instalments arise on receipt of the last lot. Nonpayment to the supplier within the specified period converts the credit into output liability with interest; credit is barred where depreciation was claimed on the tax component of capital goods and is time barred after the September return following the financial year or the annual return, whichever is earlier.

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