Conditions for claiming ITC under GST

Conditions for claiming ITC

In section 16(2) of the CGST Act, after clause (a), the following clause (aa) inserted-

  • “(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;”
  • Thus, ITC to be availed only for those invoices whose details are reflected in GSTR-2B i.e the respective suppliers (vendors) have filed their GSTR-1
  • Explanation clause to section 74(1)(ii) substituted-

(ii) where the notice under the same proceedings is issued to the main person liable to pay tax and some other persons, and such proceedings against the main person have been concluded under section 73 or section 74, the proceedings against all the persons liable to pay penalty under sections 122, 125, 129 and 130 are deemed to be concluded.

  • Thus, conclusion of proceedings will lead to conclusion of proceedings u/s. 73 or 74 and the proceedings u/s. 122 and 125 but not the proceedings u/s. 129 and 130.
  • This makes seizure and confiscation of goods and conveyances in transit a separate proceeding from the recovery of tax