ITC

Faculty for
Inter - DT + IDT | Final - IDT

YouTube - CA Amit Mahajan

Telegram - Tax and Law Notes and Guidance

 Section 16

this
-] Concept of
180 days .
Basic Understanding of ITC . In case
,
even
though Dididnat
conditions for
availing ITC .
B
receive the 11 : 1124
Murg Retailer
Consumer .
goods ,
but still she will be
Shiva - ow Tax

O - GST registration is mandatory. Goods

G
↓

Good
O Goods olw tax >
- 31

O T
3
> & Y
I able to claim because the ↑ a
I 151
the ITC Worth 1 ElL 1- ITC => (12)

↑ M GST
1 5
-

2] Inward supplie should be used for

N

supplier
M
2

Recipient
. -
M

goods got delived

C
B someone else on USTR-3Bv
to
At
·
Y

Shiva
Business Purpose- R I ↓

A 11/12/24
-

↑
18/12/24 .

GSFR 2B
the direction of DP
>
-

3) Following documents should be -

151 + 14 152 + 1 .
51
-
maintained :
.

Thus it is deemed to be received DP . Even

though recipient does not make payt it
by
a
of Tax Lab
Computation (i) Tax invoice . ,

the supplier the recipient can take the ETCV

(ii)
,

· Iw tax .
1 . 54
Debit Note Bill P -
DP ↓
(IL)
() ITC
(iii) Bill of entry
. RS-
> Recipient should pay
condition - the value

Ship to >
-

& supplier within 180 days for

(iv) Invoice prepared t RCM. ust to the
MST viability 50K- w .
r .

the date of issue of invoice

received supplier should make
.

of PST collected
a payment
Total Sections
I
2) Goods should be actually from the
recipient to the Kort .
Calso read Rules) Completion of 180 days -
301412025
for
availing
I I 7
the ITC . ↓
18 .
10 17

↓ - The
recipient should file form GSTR-3B
.
If recipient fails to pay value +ast (180

days from of invoice

Even
though the recipient has the date
,
the wrongly
7) Goods received in lots availed ITC needs to be reversed .
paid the entire amount of GST ,
↓ ↓
will only the ITC Iic can be availed when the last lot is reed.
still he get Actual date of reversal >
- 2017125Q
for those goods (proportionately) -+ .5
2 117124 ↓
> O Since Recipient will
received by the reept
also
there delay
-
was
181
&
a
which & 2 5k 1

are
+ 2 .

,
N have to pay interest& 18 % p .
.
a
18/12/24-2017125
+ 3 2 52
-
11912 B
. -
-
, ↓
Exception A
+ 4
.
2 5K .

1/10124 .

M
> Int period will start from the date on which we

·
T

utilized 18/12/24 .
wrongly availed I
65 %. the ITC i
not e
we have
though
.
.

Even
.

S
received the goods but still ,
Period will end on the date when such wrongly
Tax Invoice

will utilized add

ITCV . is reversed i e to sw fax.
the
get
we ITC
.
-

value 10h

GST 12

in the first month fully with GST

.
Intpd +
18/12/29 will 2017125
payt is made i e in July
-

Bill 10-Swip

&
to
. .

↓
11L

Int ElLX 18 % p .
a .

X = 10 553
Manish = ,

Sin
365
① still I will the ITC when the 4th lot is
Malhotra get
M received - i e . . in the month of act zu
MH
-

-sale of will recipient get the ITC once be

actually

-
goods
-

make the payment

of E11L to the supplier
180 days-
i e
12/25
W .

Ser
.

single ↓
Time limit
35111/next F
3
#yes
Actual dont

Atekunit > B
is taxable
ITCV-301111m supply ↓
sale of goods
·

I-
.

Invoice - 7 units - usin -

>
11 , / z under RCM

Not-3 units-ustre Itr-30111125 model of ITC

Bill to ship to conside
Rearailment
-

is who
515/2 Dr
# supply ~
.

·
or -
·

AR
 Section
* 17 *

9) It) on
depreciable assets. very very impopoint
is t
proviso to Sec 17(4) >
- once the option is

exercised - cannot be withdrawn

during remains
machinery This time limit will Inward
Actual cost lol 11 not be applicable for Taxable
↑
=
ITV
I
Botak Syrat
> the Fy.
.

of astein
part
Chahindra
supply
re-availment of ITC. a supply
. PAN

usT ~ Mumbai -T
- E

(i) If we consider actual last for

Check example of 180 days above where
AM-
I t 50%

C
ast 2 provise to sec 17(4) -
Restriction of 50 % will not
dep" purpose under Income Tax os
we have made a
payment on
12/12/25
1RP
+
made
EIIL ↓ be applicable where
supply by
Botak Chanindra
which is actually beyond the last date surat

2]
Inward under the same PAN- ~
Exempt ITCX another RP rega
Recipient
↓
will
get the ITC supply >4 > B
. DBan
still -
a supply
. -
Dep" at the time of actual payment
.

C *
in taxes-
ast * Section 17(5)
Reduction
NPX-
*
Taxable ITIV ~ Blocked ITC V
invoice 30/11/24
1412124
is issued 7

↓ = simple (60 % )

Then ITC of ElL->

Not
available
for 7 units cassumed)
-
Earlier Inward
3)
, a a
Exempt ITCX
if Purchase of Motor vehicle.

raised- 717m
-
Debit note is
(45 % )
(ii) If we consider El a our
for 350 white Last

actual cost
>
- which means 30/11125
~
17(2) -
Lords O
R

O
-

31/12/25
never claimed dept on the (Fuzu-25] 1000s unibo
>
I
-

we
↑A
.

·
11 1 /24 Inv GSTV R
note Business ItV -

70
component
7
ast 517125- S
T
30/11/26 v
(60 % ) 168 ) %

] Inward
Dr usiv
↓ (FM 25.26)
.

JR
3000
Thus ,
ITC of EIL- Allowed
31/12/26
-
a J Non-Bus It ( X

1451)
I] Time limit of availing the ITC
Last
(45 % )
:
seater-
uds-
O Er
invoice raiseden 1412124
-

+
time
persons
on the
17() tr other
1213X

availing
>
-

is

limit of the Its < Balle

vessels/Aircraft
.
Dalles -

if 30(11/24 2) Purchase of

OR
1) of the subsequent El
Bank-1F
*
: Nor
3
~
OR 2) Actual -
Annual Return Tustv
-
-
* Section 17(4)
2) Actual date of Filing Annual date

Returne ↓
It] Time limit of availing the It on * Banks/NBFCs/FIs provide
whichever is earlier . the Dr -

Note raised on
117124 . exempt as well as taxable supplies .

Example 17 30111/25 * Option has been given to such bank

(60%)6L
ST

112ky
-R 1) >
- BK -E (40) 42X
made avail
supply the ITC 10L
on to of
3) Repair/servicing/maintainance
Do %
BK-
30/11/24 27 Actual Annual Retum . 2)

I
-

a
10L + L
2 ④N
-
-
R

3/11/2
date
Identify the prope
stor Vehicle/ven/Aircraft
S R Always remember , time limit of
availing of T & E supplies & avail ITC nee
FTV
original inve
Purchase
Mv/v/A- -

Actual date of filing - B111/24. the ITC is different for

accordingly v = Sel 17(2)
then
ItCV

2 Expenditures
Fuls .
issued in different
-

Annual Return Dr . Note if

of Mv/v/A--
- Avail 50 %
eligible
time limit for availing -
30/1131 ITC on FP/(4/Ins & rest shall lapse- Mv/v/A- Purchase - ITC X

then
the ITC 3/11/2
It C +
Expenditures
-

Mv/v/A--
4) Membership of Club , health Fitnes Doc2 3
Tushar
.
2 Constructio of teles Tower
not *
Example - Repairs service taken
DoCI
ka
> a

Mukesh
E4L EIDL be treated as plant & Machinery -

Centre .

E 4xK ITCV EIL ITC X . From Lodha of Building .

& self construction

Sometimes Employers take a gyne memb
2) These services are availed under Paid-EIXL
EIL
for their employees . statutory obligation Cement
bricks services . ast -

blocked = 15t
?
Usually ITC
will ITC of 12
-

7) works contract
EIsL
EIL
El st
.
E8L
801
we
get the
S ~
Exception -
It -
allowed if W
I
[example -
construction] g
↑ I
↓ & Treated Treated a
↑
Ele &
as
It is a
statutory obligation . Lodha
Els
S Bir
I cap. exp
morable
I
Revenue
Imm Property.
.

Property EXP -

5) Travel benefits I I
↓
Immorable

Property
Morable
Property Fr (PRDr)
Sometimes employer spends on the
. W

↓ ↓ FTC is Blocked
I
travel of the employee ~
Pim other
Y

ITC
I
ITC
Plt
other
Cather than Pl
Han than PIM
Usually ITC >
-
blocked ~
Blocked ITC concept
↓
-

Pla
↓ ↓
ITV
applicable -
Ex
~

S
Exception -
ITC - allowed if not
ITCV
↓
It is a
statutory obligation
.
bricks services .
9) other Points - No ITC

Cement

= 15t

6] Others Main Amit Me

Dentist
peter
Dentist
Mahindra sudha > BBV EIsL El st
.
E8L
801
1) If person opted for composition
EIL
2 I
↓ ↓ S ~
W scheme
a Food . restriction
No
17153 v
Lodha
b .

Beverages ↓ & Any goods/services customs

V
received
by
Duty
Imm prop
- other HRT
outdoor catering .
C1GST ~
.

.
c
than PIM
NRTP E

d .
Cosmetic surgery ↓ > Wadhwa
is allowed
Blacked Exception :
Only 1 ITC

e .
Health service .

any restriction
There will of in India
not be When the goods are
brought
F .
Life Insurance I
It for ladhav because in which one
Health insurance . Exception : Lodha he pays customs
Duty
is allowed if these services did not use these materials of the
parts is
GSTLIGST)
mul
ITC
of
. leasing renting riving
9 himself
availed used in
,
↓
,

which are the for

which Is
~ / Aircraft on ITC
same line of business . That ITC is allowed
will be
blocked. · In Point 7 & points ITC
of
Important Points
in
,
case
& Remember this exception is only
Exceptions
1) works can tract services availed for
blocked in case Imm
property being & not for services .
for
goods -
if these services constructing foundation
1) ITC is allowed a cement other than P1M
&

3) Goods used for personal purpose .

availed used in the placing a plm >
- ITC V
↓ Disposed
lost/destroyed/stolen /woff)
which are
↓
n) Goods off

only if
*
same line of business . such expenses are
Treated as PIMV confiscated
CAPITALIZED 5) No ITC in case of fraud/betained goods/goods .
 1) :C : gible ITC
* Section 18 *
1 18(6) >
- Read Rapider
( ,
outa

verm Total ITC 10 ,

00 ,
000
P
/15-RS EXT URP-RP) (5 57 , 000) 2]37A
>
-
Read Rapider
(-) ineligible itc 55%
,
to Hers
composition
,
zers ,
.

Part
Regular
-
scheme.
(a)
I scheme to
in constitution .
Rapider
-
A
PartI 86B- Check
3)
000
Eligible ITC , 50 ,

Her to 200 .
[Re ,
RPTURP ,
T-E]
y
(b) Taxable supply to exempt
supply
.

Part -

URP-
(c) Rega Person to

-
Part I
(a) Composition scheme-Regular (b) Exempt supply > Taxable
supply T S
. .

E . .
S -
I Swifts
-

Free samples
I I =
camp-scheme Regular scheme
lo
units v ITCW
converse
-

60- 1st
Exempt Taxable . 717124
I
·

I I I units
B 17124
&

A
-

6 40
714/24
->

717/23 717124 ·
·
ITC not allowed .

617/24 A -2 X +
considered
>
-

80 cap Goods Inputs If ITC is availed it will be

Input services
·
By Inputs -

with
- us F(1)(c) read
Inputs in stock >
- Reverse v a deemed supply
invoices raised
D Inputs >
-
-
only on the

samer Ezo S
Tez
in during s prior to schedule I

Input service
year
.

stock
Conversio .
=
↓
(1) URP-RP Most Imp
2)
day . offer
as on I
~ Ins is utilized on Buy I Get 1
to >
-
Presumption -

Prior Essa

conversion .
the samedaly- If we purchase 2 products by paying GST and offered them to sale as
Buy 1 Get 1 free,the Qs is will I get the ITC for the products which is
Ins is For the service
presumption >
-

· I will get the ITC supplied free of cost?

2) Input service
.

717124 . Yes, we will get the ITC for both the products because as per the
utilized on the samedaly- availed prior to
provisions it is assumed that both the products are provided / sold for a
Go months- single price and thus, both will be considered as Taxable Supply
(12m)
· I will never
get the ITC. Capital Goods m
T S
- E . S-
3. Discount including buy more save more offer
& -
Capital
3) Goods - life = 542/60 months -
CY
I A I If we buy 5 products by paying GST and offered to sell under Buy More
-

118/23 717124 .
118/28 Save More offers by giving a discount - ITC?
au

i
21 22
C
-

.
S
RS Yes - value is irrelevant.
.

QR
22-3
↑

& 1121314
↑

Eligible Pd 12 months
2 25 a , Q2
.
-

I
Rule 37A
717124 2113/27 48m .
2113/22
-

Pd Gor-12x
Ineligible
=
=
·: =
↓ 3 Sept 202u.
↓ Total ITC XXX
converted
14 A (f) ineligible ↑ Goods . -
Purch Total ITC availed = Ela , 5 0 , 000
R
. S .
ITC ·

Ev Recipient
-
suppu er
L
10
Eligible
X
-
152
First identify to of Os bet 211312 will 17/m . : ITC to be reversede

Part I /10/2 3019/25

worth 5 %
Our I
supplier
=
Each I
/8 000 .

sale)
00
= , , GSTR-1 USTR-3BX
QU change in the constitution due to

3
Fl 21 .
22 -
Paut X

Q1Q203 Or 11 Qts
22.23
merger/Amalgamatio etc.
-
Eg

FU 23-24 -
&1 02 &3 ou

Fl 24-15- - @I Q2 A > B 3019125 zollks 25lake

Y
Recipient GSTR-2B GSTR SB
11
ITC ? Revere
intense
.

18/15/24 .
um
It ( V
wis Int & 18%
( Transferor has to file GGT ITC -
-2 ↓
Intu
↑ stal at : 11 at ineligible .
2 dans

2) Transferr to file the request to transfer the credit

Total ineligibility E 3) Tee to accept the details on cemen portal.

check Rapider for detailed explan

CA/CMA
[llat X 5%
perau] 4) Also submit declaration certificate
-
-
by
-
-