Chart 12 - ITC

Question 1

Input

Answer 1

2(59) Input

Goods(except capital goods) + used/ intended for use in business

Question 2

Input service

Answer 2

2(60)- input service

Any service + used / intended for use in business

Question 3

Capital goods

Answer 3

2(19) - Capital goods

Capitalised+ used/intended for use in business

Question 4

Sections in ITC

Answer 4

16- Eligibility and conditions for taking ITC

17- apportionment of credit and blocked credit

18- credit in special circumstances

Question 5

Eligibility 16(1)

Answer 5

Registered person

Goods or service or both used in his business

Amt shall be credited to electronic credit leder

Question 6

Conditions for taking ITC

Answer 6

TRTR

Tax paying doc.

Received goods

Tax paid by supplier

Filed previous return (recipient)

Question 7

Section 17

Answer 7

17(1) ITC for goods bought for business purpose

17(2) ITC attributable for taxable supplies

17(3) exempt supply

17(4) banking co/ FI/ NBFC
Option1: ITC as usual
Option2: eligible ITC * 50%

Question 8

Sec 17(5) blocked credit

Answer 8

MVS FCCCN PLN

(a) motor vehicle,
(aa) vessels & aircraft,
(ab) services of general insurance

(b) Food & beverages

(c) works contract service

(d) construction

(e) composition scheme

(f) NRI

(g) personal consumption

(h) lost or stolen goods

(i) notice

Question 9

17(6)

Answer 9

Govt. Prescribes the manner credit may be attributed

Question 10

Section 18

Answer 10

18(1)- RP shall be entitled to take ITC of Inputs contained in semi fg/fg

18(2)- no ITC of goods/ services/ both for invoices older than 1 yr

18(3)- change in constitution- ITC transfer to transferee

18(4)- reversal of ITC claimed on semi fg/fg by debit amt in cash/ credit ledger

18(5)- amt u/ss (1) & (4) shall be calculated in manner prescribed

18(6)- in case of supply of CG/ P&M (on which ITC taken)

RP shall pay - reduced ITC

(ITC taken 5% per qtr/ part)
Or
Tax on taxable value u/s 15

W.e. higher