GST - Input Tax Credit - Draft Rules 31-3-2017

 

GST input tax credit rules require specified documents, monthly reporting, turnover-based ISD distribution, and reversals for unpaid supplier consideration. The draft rules require specified documents and FORM GSTR-2 reporting to claim Input Tax Credit, disallow credit where tax was paid under orders for fraud or suppression, and mandate reversal and interest where supplier consideration is unpaid after 180 days. Banking/financial institutions have special credit limitations and a 50% admissibility rule for remaining input tax. ISDs must distribute credit monthly via FORM GSTR-6 using a turnover-proportionate formula, issue ISD invoices/credit notes, and follow prescribed apportionment on adjustments. Capital goods and stock-related credits are subject to amortisation, five-year attribution, declaration (FORM GST ITC-01), and annual reconciliation with adjustments to output tax.