GST 2016 Taxation

Input credit under GST Law

Under GST regime Input Credit available for GST payment will be smooth but will have few conditions and restrictions as in existing Cenvat rule.

Below are few area where GST input is either conditional or restricted:

Goods received in lot:

Input is available on receipt of last lot or instalment.


If no payment made of supplies in 180 days from the date of Invoice, then Input availed on such supplies will be taken as output liability along with interest thereon.


No Input of Invoice/Debit note after annual return/Return u/s39 in September for the following year to which Invoice/debit note pertain to Sec16(4).


No Input on Motor vehicle or conveyance except for Transport of Goods


No input of goods and services received by a non-resident taxable person except on goods imported by him.

u/s 18(2): No input u/s 18(1) (for first time GST applicablity) after the end of one year from the date of Invoice.

Order of Credit availment under GST:

Credit under GST will be allowed to setoff against liability in below order;

Input TypeOrder of adjustment-IOrder of adjustment-IIOrder of adjustment-IIIOrder of adjustment-IV

Central taxes shall not be allowed to be utilised against payment of state tax or union territory tax and vice-versa.

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