GST Input Tax Credit: Understanding Eligibility and Requirements Fully
In the complex landscape of Goods and Services Tax (GST) , claiming Input Tax Credit (ITC) is a critical aspect for businesses looking to optimize their tax liabilities. To navigate this terrain successfully, one must delve into the eligibility criteria and requirements associated with the GST Input Tax Credit. Understanding Eligibility: To claim an Input Tax Credit under GST, the fundamental prerequisite is that the entity must be a registered taxpayer under the GST regime. Additionally, the goods or services on which ITC is being claimed must have been used or intended to be used for business purposes. Any personal or non-business usage is not eligible for credit. Moreover, the supplier of the goods or services must have furnished the requisite details in their GST returns. A seamless flow of information between the supplier and the recipient is crucial for ITC claims. Key Requirements: Compliance with GST regulations is paramount for ITC eligibility. The recipient must ...