CENVAT CREDIT

[PRANAB PANDA]

Dear All

We are following the procedure as laid down in Rule 4 Cenvat Credit Rules, 2004 at the time of availing Cenvat credit on input, capital goods and service.

What will the conditions for availing ITC on inward supply under GST era?

• Whether on receipt of inward supply
• Receipt of invoice/Challan
• Making Payment to the supplier

 

AI Summary

Input tax credit entitlement likely depends on supplier's discharge of output tax, pending final GST enactment.
Whether entitlement to input tax credit under GST arises on receipt of goods/services, on receipt of invoice, or on payment is unsettled pending enactment; current Cenvat practice may not apply. The discussion notes the draft GST may change and emphasizes that a prevalent practical view ties ITC availability to the supplier's payment of output tax, with denial of credit if the supplier has not discharged tax. Draft provisions should not be treated as final.