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CS Executive Tax Laws study materials
CS Executive Tax Laws study resources

CS Executive Tax Laws: GST: Input Tax Credit, Registration, Invoicing and Returns

CS Executive Tax Laws · Work through your exam, one topic at a time.

All guide sections

GST: Input Tax Credit, Registration, Invoicing and Returns

What the exam tests

This domain tests eligibility and conditions for input tax credit, blocked credits, registration thresholds, tax invoice requirements and the return framework. The exam often asks whether a particular credit is available and what document supports it.

Core rules

  • ITC conditions: Possession of a tax invoice or debit note; receipt of goods or services; tax actually paid to the government; the supplier has furnished the invoice in its return; and the details appear in the recipient's GSTR-2B. The recipient must furnish its return.
  • Payment condition: For goods and services, ITC is reversed if the supplier is not paid within 180 days, subject to the prescribed rules.
  • Blocked credit: Section 17(5) blocks credit for personal consumption, specified motor vehicles, food and beverages, club membership, works contract for immovable property and other listed items.
  • Apportionment: Common credit used partly for exempt supplies is apportioned under the prescribed formula.
  • Registration: Threshold is generally ₹40 lakh for goods and ₹20 lakh for services, with lower limits for special-category states. Compulsory registration applies in specified cases, including certain inter-state supplies and reverse-charge cases.
  • Invoicing and returns: Tax invoices must contain prescribed particulars. E-invoicing applies above the notified turnover. Regular returns include GSTR-1, GSTR-3B and annual GSTR-9; the QRMP scheme is available to eligible small taxpayers.

Worked example

A registered buyer receives a tax invoice for goods of ₹1,00,000 plus IGST of ₹18,000. The goods are received, the invoice appears in GSTR-2B, the supplier has paid tax and the buyer files its return. The buyer can generally avail ITC of ₹18,000. If the goods are used for personal consumption, the credit is blocked under Section 17(5).

Traps

Possession of an invoice alone is not enough. GSTR-2B matching matters. Credit is blocked even if a valid invoice exists for a blocked category. The 180-day payment rule applies to goods and services. Registration thresholds differ for goods and services.