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We have discussed a lot about Input Tax Credit in our previous blogs, a lot of related topics and conditions relating to claiming ITC under different situations have been discussed.
Topics including what ITC is, describing conditions to Input Service Distributor, capital goods, transition, etc. we have discussed the principals relating to all these situations. But we also need to understand how this will work in practical situations and what compliances in terms of filing forms and submitting documents are to be followed by taxpayers to claim this Input Tax Credit.
To claim ITC, one of the major prerequisites is to make sure that the registered taxpayer making a claim for such Input Tax Credit is in possession of a document evidencing payment of taxes by the taxpayer. The documents that are covered under the head, or in other words documents that are accepted by the authorities and to be attached to the return of GSTR-02 include the following:
Any taxpayer who was registered under any previous laws and was eligible to claim Input Tax Credit under such laws have the right to transfer such credit under Goods and Service Tax Laws. However, for transition of ITC under GST certain conditions are to be satisfied like:
Forms to be Filed-
Now, that we have discussed who is eligible to claim such transition of GST. Let’s discuss what are the forms required to be filed for such transition.
Every taxpayer who was:
Are required to file a declaration of such claimed ITC in FORM GST TRAN- 1on the common portal within 90 days starting from the date of implementation of GST i.e. 1st July 2017.
Additional provisions for other people, i.e. who were neither registered under old laws nor were engaged in the manufacture of exempted goods, are required to submit a statement in FORM GST TRAN-2 at the end of the 6 consecutive tax periods during which the scheme is in operation.
If any taxpayer who was either:
Are required to file a declaration in FORM GST TRAN- 1.
Details of ITC furnished in such form are to be verified with the details furnished by the supplier in their GSTR-1 or GSTR-4, as the case may be.
Transfer of credit on sale, merger, amalgamation, lease or transfer of a business
Any person covered under these situations are required to file details in FORM GST ITC-02, along with that they have an obligation to file a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee.
After which the transferee is required to verify the information provided by the transferor, only after which lying credit is credited to his electronic credit ledger.
The forms and documents required for claiming ITC (Input Tax Credit) should be filled and submitted within the prescribed time period under GST. In case you have any doubt regarding the same, contact Enterslice.
Read our article:Section 23 of CGST Act: Persons not liable to take GST registration
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
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