Input tax credit entitlement requires invoice, receipt, tax payment and return filing; non-payment triggers reversal. Section 16 entitles a registered person to take input tax credit for supplies used in business, subject to conditions: possession of a tax invoice or prescribed document from a registered supplier, receipt of the goods or services (with deemed receipt rules), payment of the tax to Government in cash or by admissible credit, and filing the statutory return. Credit for goods received in instalments is available upon receipt of the last instalment. Failure to pay the supplier within the prescribed period triggers addition of equivalent input tax credit to output liability with interest; credit is disallowed where depreciation was claimed on the tax component, and time limits apply for claiming credit.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Section 16 entitles a registered person to take input tax credit for supplies used in business, subject to conditions: possession of a tax invoice or prescribed document from a registered supplier, receipt of the goods or services (with deemed receipt rules), payment of the tax to Government in cash or by admissible credit, and filing the statutory return. Credit for goods received in instalments is available upon receipt of the last instalment. Failure to pay the supplier within the prescribed period triggers addition of equivalent input tax credit to output liability with interest; credit is disallowed where depreciation was claimed on the tax component, and time limits apply for claiming credit.
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