INPUT TAX CREDIT (ITC) CHECKLIST
Conditions under Section 16, 17 & 18 of the CGST Act · FY 2025-26
Basic Conditions (Section 16)
- ☐ Possess a valid tax invoice / debit note
- ☐ Goods or services have actually been received
- ☐ The supplier has paid the tax to the government
- ☐ The corresponding return (GSTR-3B) has been filed
Matching & Timing
- ☐ Credit appears in GSTR-2B for the period (Rule 36(4))
- ☐ Claim within the time limit – 30 November following the FY
- ☐ Reverse ITC if supplier is not paid within 180 days
- ☐ Re-claim the reversed credit on subsequent payment
Blocked & Ineligible (Section 17(5))
- ☐ Exclude motor vehicles, food, club and health services (with exceptions)
- ☐ Exclude works contract / construction of immovable property
- ☐ Exclude goods lost, stolen, destroyed or given as free samples
- ☐ Exclude ITC on personal-use and CSR-related expenses
Apportionment & Records
- ☐ Apportion common credit under Rule 42 / 43 for exempt supplies
- ☐ Segregate ITC on inputs, input services and capital goods
- ☐ Maintain the ITC register with invoice-wise details
- ☐ Reconcile ITC ledger with GSTR-3B and books monthly
ITC once availed on a blocked or unmatched item invites reversal with 18% interest; test each claim against all four conditions before availing.