When is ITC Available -On Bill Date or Receipt Date

Last updated at Dec. 16, 2024 by

As per GST Rule,
 
Following condition must be satisfied for claiming ITC
  1. Person should be in possession of Invoice/Debit Note/Other Documents
  2. Person has Received Goods/Service
  3. Tax Charged has Actually been paid to Government by seller
  4. Seller has furnished GST Return showing sales (supply)
 
Hence ,it is important to have possession of invoice+possession of goods to claim ITC
 
Example
Suppose Goods Sold by A to B on 31 Jan but B Receive goods on 1 Feb
In this case, Invoice Date is 31 Jan and Goods Receive on 1 Feb
Both possession of goods and possession of invoice happens on 1 Feb
So ITC available on 1 Feb
 
 
Summary
For Sales, we consider Invoice Date
For purchase, we consider Receipt Date
 
Example

 

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Transcript

Input Available on Date Goods received in Premises and Not Invoice Date However on Sales, Output to be Given as per Date of Invoice A B (Delhi) (Mumbai) Goods sent on 30 th Sep Goods received on 3 rd Oct A will show Sales on 30 th Sep B will show Input on 3 rd Oct Suppose A Makes Sales to B teachoo.com

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.