INPUT TAX CREDIT

Input Tax Credit refers to the tax paid on goods or

service involved in supply. Output tax refers to tax
collected at the time of supply of goods or services.
The essence of mechanism of GST lies in allowing a
supplier of goods or services to deduct the input tax
from the output tax. The supplier is required to remit
only the difference to the government.
Therefore GST to be remitted by a supplier = t(o) -
t(I) where 't (o)' means output tax and 't(I)' means
input tax.
In simple words, ITC means at the time of paying
tax on sales, you can reduce the tax you have
already paid on purchase.
PROVISIONS

1. In the course or furtherance of business

2. Allowed to registered persons.
3. Tax invoice or debit note.
4. Goods received.
5. Against output tax
6. Return
7. Lots or installments
8. Failure of payment to supplier with in 180days.
 ENROLLMENT AND REGISTRATION

Government has joined hands with the National

Securities Depository Limited (NSDL) and together
they have created Goods and Services Tax
Network (GSTN). It's a non-government firm which
will provide IT infrastructure services to the central
and state governments, stakeholders and
taxpayers for proper implementation and
regulation of GST.
 PERSONS LIABLE FOR GST REGISTRATION
-SECTION 22 OF THE CGST ACT

a) State or UTs:
Every supplier of the goods or services or both
needs to register in a state or a Union Territory, if his
turnover exceeds RS 20 lakhs.
b) special category states:
In case of special category states namely AP, J&K,
Assam, Nagaland, Mizoram, Sikkim, Uttarakhand,
etc.the person shall be liable to be registered if his
turnover exceeds Rs.10 lakhs.
c) Aggregate Turnover:
Means aggregate value of all taxable supplies,
exempt supplies, exports, and inter-state supplies
of person having the same PAN but excludes
taxes.
d) Registration of Transferee or Successor:
If a registered business by a taxable person is
transferred to another person, then such a
person, be it Successor or a transferee, shall be
liable to be registered under the Act.
e) Registration in case of amalgamation or
demerger:
A transfer due to sanction of a scheme or an
arrangement for amalgamation or demerger
takes place of two or more companies in
accordance with the order of the High Court or
Tribunal, the transferee shall be liable to be
registered.
 Agents of a supplier & Input service distributor
 Those paying tax under the reverse ccharge
mechanism
 Person who supplies via e-commerce
aggregator
 Every e-commerce aggregator
 Person supplying online information and
database access or retrieval services from a
place outside India to a person in India, other
than a registered taxable person
 Any person who is registered before the
appointed day i.e. 1st July 2017 is liable to be
registered under the CGST Act.