Which of the following is a condition for claiming input tax credit (ITC) under
Practice Questions
Q1
Which of the following is a condition for claiming input tax credit (ITC) under GST?
The supplier must be registered
The goods must be used for personal consumption
The invoice must be in the name of the consumer
The goods must be imported
Questions & Step-by-Step Solutions
Which of the following is a condition for claiming input tax credit (ITC) under GST?
Step 1: Understand what input tax credit (ITC) is. ITC allows businesses to reduce the tax they have already paid on purchases from their total tax liability.
Step 2: Know that to claim ITC, the supplier (the person or business selling the goods/services) must be registered under GST.
Step 3: Check if the supplier has a valid GST registration number.
Step 4: Ensure that the purchase invoice from the supplier includes the GST amount and the supplier's GST registration details.
Step 5: Confirm that the goods/services purchased are used for business purposes.
