FAQs on Input Tax Credit under GST

1. What is input tax?Input tax” has been defined under GST Law. Input tax in relation to a taxable person, means the (IGST and CGST) in respect of CGST Act and (IGST and SGST) in respect of SGST Act, charged on any supply of goods and/or services to him which are used, or are intended to be used, in the course or furtherance of his business and includes the tax payable under sub-section (3) of section 7.Under the IGST Act, input tax is defined as IGST, CGST or SGST charged on any supply of goods and/or services.We can claim the Input…

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Specific Cases Where Input Tax Credit under GST is not Allowed

Following are the Specific cases that are mentioned under GST on which no input tax credit shall be available to the applicant.1. Motor vehicles, vessels, and aircraftNo ITC available for Motor vehicles used to transport of persons, having a seating capacity of less than or equal to 12 persons excluding the driver (total 13 including Driver).Example, if you buy a car for your business then you cannot claim ITC on it.Exceptions to ITC on motor vehicles/vessels/aircraftsITC will be available when the vehicle is used for further taxable supplies by the following.a) you are in Buy/Sell business of vehicles or conveyances,…

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