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Input Tax Credit under GST

Section 41 – Claim of input tax credit and provisional acceptance thereof under CGST Act 2017

Detail analysis of notified Rules and the provisions of Section 41 (Claim of input tax credit and provisional acceptance thereof) of the Central Goods and Services Tax (CGST) Act, 2017.

Chapter IX (Sections 37-48) of the Central Goods and Services Tax (CGST) Act, 2017 deals with provisions related to Accounts and Records. Section 41 of Central Goods and Services Tax Act, 2017 (12 of 2017) provides for claim of input tax credit and provisional acceptance thereof under CGST Act 2017.

Recently, we have discussed in detail section 40 (i.e. First return) of CGST Act 2017. Today, we learn the provisions of section 41 of the CGST Act 2017. Complete Details of CGST Section 41 – claim of input tax credit and provisional acceptance thereof. You may CLICK HERE to download list of all sections of CGST Act 2017 in PDF format.

Notes on Section 41 of CGST Act 2017

Section 41 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017 – Central Tax, G.S.R. 658(E), dated 28.06.2017. In this note, you will learn detail of the provisions of section 41 of CGST Act 2017 read with Central GST Rules 2017.

Section 41(1): Every registered person shall, subject to such conditions and restrictions as may be prescribed, be entitled to take the credit of eligible input tax, as self-assessed, in his return and such amount shall be credited on a provisional basis to his electronic credit ledger.

Section 41(2): The credit referred to in sub-section (1) shall be utilised only for payment of self- assessed output tax as per the return referred to in the said sub-section.

A per Rule 69 of CGST Rule 2017, the following details relating to the claim of Input Tax Credit (ITC) on inward supplies including imports, provisionally allowed under section 41, shall be matched under section 42 after the due date for furnishing the return in FORM GSTR-3-

  1. Goods and Services Tax Identification Number of the supplier;
  2. Goods and Services Tax Identification Number of the recipient;
  3. invoice or debit note number;
  4. invoice or debit note date; and
  5. tax amount:

No registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect of the said supply.

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