Chartered Accountant (AIR-16), 4 years experience with Aditya Birla Group, Mumbai, Currently practicing in GST; passionate about teaching.

Palkesh Asawa

In this course, we discuss the provisions of input tax credit, one of the most important provisions in GST having a significant weightage in CA Exams too. We shall understand key provisions and procedures along with practical, exam-oriented examples.

Choose from the various concepts taught in a comprehensible way for students looking to strengthen their CA preparation.

CA Foundation

Hindi

(Hindi) GST Course 8: Input Tax Credit

Goods and Services Tax Law

Elective: Indirect Tax Laws

CA Final Group 2

CA, CS, and CMA

Ace the toughest competitive and government exams in India 

Test Preparation

In this lesson I have given an overview of concepts that we will study in the course along with the context as to why ITC is important. We also quickly discuss how we are going to approach this course and what are the benefits for you.

Overview of ITC Course (in Hindi)

In this course we discuss the definition of inputs along with practical examples of it. We also distinguish between "goods" and "inputs" which helps us to appreciate the nuances of GST law.

Meaning of "inputs" in GST (in Hindi)

In this lesson we talk about the meaning of capital goods (those which are capitalised in the books of account and used for business purposes) and look at practical examples to understand it.

Meaning of "capital goods" in GST (in Hindi)

In this lesson we discuss the meaning of "input services" and distinguish it from services. We also discuss why it's important to classify things as either inputs or capital goods or input services along with illustrative examples.

Meaning of "input services" in GST (in Hindi)

In this lesson we properly define the terms input tax and input tax credit along with practical examples of the conditions imbibed in the definition. ITC is available is supply is made to the registered person himself.

"Input Tax" and "Input Tax Credit" Defined (in Hindi)

In this lesson we talk about section 16(1) i.e. claim of input tax credit and look at certain illustrative examples to properly understand the conditions given in section 16(1) in relation to claim of ITC.

Section 16(1): claim of ITC

In this lesson we will talk about the conditions to claim ITC as per section 16(2): invoice received, goods/services received, tax paid and returns filed- along with practical examples.

Conditions to claim ITC (in Hindi)

In this lesson we talk about the time restrictions to claim credit - i.e. payment must be made to the supplier within 180 days, and time of availing ITC in case goods are received in lots or instalments.

Time restrictions on claiming ITC

In this lesson we talk about the ITC on capital goods in case depreciation is also claimed on those capital goods as per income tax act. We also look at the last date to claim the input tax credit of invoices based on the due dates of September filing.

ITC of capital goods and last date to claim ITC

In this lesson we talk about residuary rules of claiming ITC including reavailment of credit, interest in case of reversal and non availability in case of tax paid on demand in cases of fraud.

Additional rules related to ITC claim

In this lesson, we talk about the concept of apportionment of input tax credit in case goods or services are used partly for exempt supplies and partly for taxable supplies or for business/non-business uses. We also discuss why ITC is available for zero rated supplies.

Apportionment of ITC - concept

In this lesson we talk about Rule 42 of CGST Rules which talks about segregation of ITC related to exempt supplies and non-business related supplies in case of inputs and input services only.

Apportionment of ITC - Rule 42

In this lesson we study numerical calculations and examples of Rule 42 about distributing the ITC between exempt and non-exempt portion along with business and non-business portion.

Examples of Rule 42 (Part - 1)

In this lesson we take some more examples of Rule 42 to discuss that zero rated supplies will be treated as taxable and that abnormal ups and downs can come due to this rule.

Examples of Rule 42 (Part - 2)

In this lesson we talk about the reversal in case of capital goods which are used partly for taxable supplies and partly for exempted supplies b

Rule 43: Reversal in case of capital goods

In this lesson we discuss various examples of reversal in redirect of common ITC for assets that are used for exempted as well as taxable supplies.

Examples of Rule 43

In this lesson we talk about the discussion option available for banking companies to avail 50% of the eligible ITC in case they don't want to follow the complicated procedure of rule 42/43.

Special rules of reversal in some cases

In this lesson we talk about section 17(5) of the CGST Act having a list of goods or services on which ITC cannot be claimed. We also study the case where ITC cannot be claimed if the supplier has done any fraud etc.

Ineligible ITC

In this lesson we talk about the ITC of motor vehicles and the meaning of motor vehicle and conveyance along with understanding of exceptions to this rule, i.e. cases where ITC is allowed

ITC ineligible on motor vehicles

In this lesson we talk about the upcoming changes in rules related to ITC of motor vehicles, which are not yet effective but will mostly be notified by Feb 2019.

Upcoming changes in motor vehicle rules

In this lesson we talk about the concept of blocked ITC on food, beverages, rent a cab and other services along with examples of situations which are covered by the exceptions to the general block ITC rules.

Blocked ITC

In this lesson we talk about the meaning of works contract and construction and understand that ITC cannot be claimed if it's for a construction contract to the extent of capitalisation.

ITC for works contracts

In this lesson we discuss the provisions related to blocked ITC in case of immovable property being constructed by a person on his own account along with logic for not allowing ITC on immovable property.

Blocked ITC for self construction

In this lesson we discuss that ITC shall not be allowed in case goods were lost or destroyed and also understand what happens in case of normal loss or free gifts

ITC on goods lost or given for free

In this lesson we discuss the special cases in which ITC can be claimed by the taxpayer (such as new registration or when supply becomes taxable) along with key provisions to remember in that.

Claim of ITC in special cases

In this lesson we discuss the provisions related to transfer of ITC in case of merger or takeover of a business. We further discuss forms related to claim of ITC such as ITC 01 and ITC 02 along with how to fill these forms.

Transfer of ITC in case of merger, etc.

In this lesson we talk about job work provisions including meaning and significance of job work along with procedures if issuing delivery challan and filling form ITC-04

ITC in case of job work

In this lesson we talk about the meaning of input service distributor along with conditions which have to be fulfilled for distribution of credit by ISD and which turnover has to be seen for this purpose.

Input Service Distributor

In this lesson we talk about the method of distribution of input tax credit by an input service distributor including the ratio to be followed and the procedure for determination of amount of credit.

Procedure for ITC distribution by ISD

In this course we take a review of the entire course useful for revision purposes and to recollect all the important learnings from this course from a single lesson.

Review of ITC course (part - 1)

Review of ITC course (part - 2)

Myself a Chartered Accountant (CA) & Company Secretary (CS) & having the 10 years experience. I have worked with TCS ICICI Bank DK etc. Now 

CA Arun Chhajer

(Hindi) GST Audit Checklist

Rajesh K Verma

This course will cover gst topic with latest amendment . Hope that you will enjoy this course. Thank you

(Hindi) CA Exams: Goods and Services Tax Law for May / November 2019

In this course we talk about the place of supply of services in case the recipient or supplier is outside India (section 13 of IGST Act)

(Hindi) GST Course 4: Place of Supply (Section 13 of IGST Act)

In this course we talk about the provisions of levy and collection of GST, including the charging section, basic exemption limit, composition scheme, mixed and composite supplies.

GST Course 5: Charge of GST

This course describes basic concepts of Customs law, indirect tax, ca exams.

Lessons

31 lessons • 5h 44m