When is Credit taken?

[Arun Agarwal]

Assuming that the conditions of section 16(2) are met, can it be argued that the credit is actually taken when accounted for in the books? Any case laws supporting this argument.

Thanks in advance.

AI Summary

GST Credit: Entry in Books Isn't Enough, Must Reflect in ECL via GSTR-3B per Sections 16(2) & 16(4) CGST Act. A discussion on a forum addresses when credit is considered taken under the Goods and Services Tax (GST) system. The consensus among participants is that merely accounting for credit in the books does not constitute taking credit. Instead, it must be reflected in the Electronic Credit Ledger (ECL) through filing GSTR-3B. Legal precedents and sections 16(2) and 16(4) of the CGST Act are referenced, highlighting that both the entry in the Common Portal System and the books of accounts are mandatory. Failure to comply with these requirements may result in litigation.