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1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesA genuine purchase does not automatically qualify for GST input tax credit (ITC). In India, a registered buyer must satisfy the applicable statutory conditions—including holding the required tax document, receiving the supply, using it for business, furnishing the relevant return and meeting the tax-payment condition. A supplier’s failure to remit tax can create a separate, fact-sensitive dispute; paying the supplier and holding an invoice do not by themselves guarantee credit.
What must be true before a buyer can claim ITC?
Section 16 of the Central Goods and Services Tax (CGST) Act, 2017 allows a registered person to claim input tax charged on supplies used or intended for use in the course or furtherance of business, subject to the Act’s conditions and restrictions. The requirements are cumulative: commercial genuineness alone is not a substitute for satisfying them. See the CGST Act, section 16.
- Eligible claimant and business use: The claimant must be a registered person, and the goods or services must be used or intended for business. Credit for mixed business and non-business use is restricted to the business portion under section 17(1).
- Prescribed document: The buyer must hold the applicable tax invoice, debit note or other prescribed tax-paying document. The relevant document and particulars depend on the kind of supply and applicable rules.
- Receipt of supply: The buyer must have received the goods or services. For goods delivered to another person on the registered buyer’s direction, the Act provides a deemed-receipt rule when its conditions are met.
- Tax-payment condition: The tax charged must have been paid to the Government, as provided by law. Payment of the invoice to the supplier is not the same thing as proof that the supplier remitted the tax.
- Return and deadline: The claimant must furnish the section 39 return and claim within the applicable time limit, subject to specific statutory relief.
- No applicable block: The credit must not be barred or restricted by section 17 or another applicable provision.
These checks answer whether the credit meets the statutory framework; they do not guarantee that a disputed claim will be accepted. The CBIC Input Tax Credit Rules set out applicable documents and procedural requirements.
What records help show that the purchase was genuine?
Section 155 places the burden of proving entitlement to ITC on the claimant. Keep records that together explain what was purchased, from whom, how it reached or was delivered for the buyer, how it was used, and how it was recorded. The particular evidence that matters will vary by transaction.
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- The prescribed invoice or other applicable tax document.
- A purchase order, contract or other record of the commercial arrangement, where relevant.
- Proof of payment to the supplier and the buyer’s accounting entries.
- Goods-receipt, delivery or transport records where relevant; for services, records showing performance or delivery.
- Return and reconciliation records supporting the claim and the relevant reporting period.
This is practical evidentiary guidance, not a rule that every item on the list is a separate universal condition for every purchase. An invoice is important, but it does not conclusively establish that a supply was actually made. Nor is one particular transport document required for every kind of transaction. In State of Karnataka v. Ecom Gill Coffee Trading Pvt. Ltd., the Supreme Court discussed corroborating evidence in a Karnataka VAT dispute. That decision concerns a different tax context; it should not be presented as a direct ruling on CGST section 16 or as a nationwide GST checklist. See the Supreme Court judgment.
What if the supplier collected GST but did not remit it?
Section 16(2)(c) requires that the tax charged be paid to the Government as provided by law. The effect of a supplier’s failure to remit tax, where the buyer says the purchase was genuine and the buyer met the other requirements, has been litigated. Some reported High Court decisions have granted relief to bona fide buyers in particular circumstances, while recognizing that credit may be denied where the evidence points to a non-genuine transaction or collusion.
For example, reported decisions include Sri Gurucharan Kangsa Banik v. Union of India and M/S Cart Infralog Ltd. & Anr. v. The Additional Commissioner. These reports are not a blanket national rule. Their relevance depends on the facts, procedural posture, governing State or Union Territory law, applicable statutory version and binding precedent. A buyer should not assume that paying the supplier always satisfies the Government-remittance condition, or that bona fide status always prevents denial. Read the Gauhati High Court report and the Cart Infralog report in their specific legal context.
If a demand or notice challenges your ITC, preserve the transaction records, respond by the deadline stated in the notice and get advice from a GST practitioner or lawyer familiar with the relevant jurisdiction and current case law. The outcome turns on the governing law and evidence; a reported decision is not an automatic result for another buyer.
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How is the 180-day payment rule different?
The 180-day rule concerns whether the buyer paid the supplier; it is separate from whether the supplier paid tax to the Government.
| Question | What it concerns | Relevant treatment |
|---|---|---|
| Did the buyer pay the supplier? | Payment of the value of the supply and tax to the supplier | Where applicable, if the recipient does not pay within 180 days from the invoice date, the recipient must add back an amount equal to the ITC availed, with interest, in the prescribed manner. The credit may be availed again after payment to the supplier. |
| Did the supplier pay tax to the Government? | The tax-payment condition in section 16(2)(c) | This is a distinct statutory condition and potential dispute. Buyer payment to the supplier does not itself establish that the supplier remitted tax. |
The 180-day provision does not apply to supplies on which tax is payable under reverse charge. CBIC rules describe the return and interest mechanics; CBIC FAQs identify specified Schedule I supplies between distinct persons as deemed paid for this purpose. Check the applicable Act and rules, the CBIC rules and the CBIC FAQs for the relevant case.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is the time limit for claiming ITC?
Under the current section 16(4) text, the general deadline is 30 November following the end of the relevant financial year, or the date the relevant annual return is furnished, whichever is earlier. This is subject to statutory exceptions and applicable amendments.
Sections 16(5) and 16(6), added retrospectively with effect from 1 July 2017, provide relief in specified cases. CBIC Circular No. 237/31/2024-GST, dated 15 October 2024, explains implementation of those provisions. They do not make all old or missed ITC claims available again: whether relief applies depends on the facts and filing history. Check the relevant financial year, annual-return filing date and current law against the CGST Act and CBIC Circular 237/31/2024-GST.
Which purchases may be restricted or blocked?
Even a properly documented business purchase may need apportionment or may fall within a blocked-credit category. Section 17(1) restricts credit when goods or services are used partly for business and partly for other purposes. Section 17(5) blocks specified credits, subject to exceptions in the statutory text. Examples include certain motor vehicles and conveyances, specified food and beverage or personal-service expenses, club membership, personal consumption, goods lost or destroyed, and gifts or free samples.
Those examples are not a complete or static list. The applicable category, exceptions and wording can matter, so check the current CGST Act, section 17 before treating a particular expense as eligible.
A practical eligibility check before filing
- Confirm the claimant is registered and the purchase is for business use.
- Match the transaction to the prescribed invoice or other applicable document and confirm that the goods or services were received.
- Check the invoice date, payment status, return and claim deadline, including whether a specific statutory exception applies.
- Review section 17 for business-use apportionment or blocked credit.
- Keep transaction evidence together with return and reconciliation records. If a supplier default or genuineness challenge arises, assess the law and binding decisions for the relevant jurisdiction rather than relying on a general assurance.
Tax law, notifications and judicial decisions can change. This overview reflects the CGST Act and CBIC materials available as at 7 October 2026; verify the current law, the relevant State or Union Territory GST enactment and applicable decisions before acting.
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