TaxTMI 
TaxTMI 
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.
When is Credit taken?
28 Mar 2024 
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Input tax credit timing: credit is taken only when claimed in returns and reflected in the electronic credit ledger.
When entitlement to input tax credit requires both satisfaction of eligibility conditions and the procedural step of claiming the credit by filing prescribed returns and obtaining credit in the electronic credit ledger. Mere entries in a taxpayer's books, without corresponding return filing and electronic ledger credit, do not constitute having taken the credit for compliance or time limit purposes. (AI Summary)
When entitlement to input tax credit requires both satisfaction of eligibility conditions and the procedural step of claiming the credit by filing prescribed returns and obtaining credit in the electronic credit ledger. Mere entries in a taxpayer's books, without corresponding return filing and electronic ledger credit, do not constitute having taken the credit for compliance or time limit purposes. (AI Summary)