Which of the following is a condition for availing input tax credit under GST?
Practice Questions
Q1
Which of the following is a condition for availing input tax credit under GST?
The supplier must be unregistered
The goods must be used for personal consumption
The invoice must be in the name of the recipient
The goods must be imported
Questions & Step-by-Step Solutions
Which of the following is a condition for availing input tax credit under GST?
Step 1: Understand what input tax credit (ITC) is. It is a benefit that allows businesses to reduce the tax they have to pay on their sales by the amount of tax they have already paid on their purchases.
Step 2: Know that to claim ITC, you need to have a valid invoice for the goods or services you purchased.
Step 3: Check the name on the invoice. The invoice must be in the name of the person or business that is claiming the ITC.
Step 4: Ensure that the invoice includes all necessary details, such as the GST number of the supplier and the recipient.
Step 5: Confirm that the goods or services purchased are used for business purposes.
