TaxTMI 
TaxTMI 
Whether Adjustment thru debit and credit note i/r/o non-related party supply transaction tantamount to payment of value and tax as envisaged under proviao to section 16 (2) of CGST Act to confirm the admissibility of ITC
Value and tax payment condition under provio to Section 16(2)of CGST AcT
21 Jan 2025 
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Payment requirement for input tax credit: adjustments via debit or credit notes need payment or documentary support to claim ITC.
Entitlement to input tax credit linked to payment of invoice value and tax to the supplier; debit or credit notes alone do not suffice unless payment is made or adjustments are supported by required documentary and payment records. Incidental expenses such as bank charges affect valuation and must be considered; if the supplier has paid the tax, recipient credit should not be impacted and book adjustments or a documented financial credit note are ordinarily acceptable. (AI Summary)
Entitlement to input tax credit linked to payment of invoice value and tax to the supplier; debit or credit notes alone do not suffice unless payment is made or adjustments are supported by required documentary and payment records. Incidental expenses such as bank charges affect valuation and must be considered; if the supplier has paid the tax, recipient credit should not be impacted and book adjustments or a documented financial credit note are ordinarily acceptable. (AI Summary)