Input Tax Credit
Eligibility, blocked credit, Rules 37, 38, 42, 43, 86A, and 2B matching.
11 guides · read in order or jump to what you need
01
Input Service Distributor (ISD)
How a head office passes on ITC of common services to branches in other states.
02
What is ITC and when can you claim it
The four conditions, the time limit, and what counts as eligible ITC.
03
Blocked ITC under section 17(5)
Purchases where GST credit is never allowed, and the exceptions.
04
ITC reversal: when and how
All the situations where ITC must be reversed, and where to report it.
05
Rules 42 and 43: common credit reversal
Working out the ITC to reverse when inputs serve both taxable and exempt supplies.
06
Rules 37 and 37A: non-payment and supplier non-filing
Reverse ITC if you don't pay the supplier in 180 days or they don't file GSTR-3B.
07
Rule 38: ITC option for banks and financial institutions
The 50% ITC option for banking companies and financial institutions.
08
Rule 86A: blocking of the electronic credit ledger
When the department can block your ITC, and what to do about it.
09
GSTR-2B reconciliation and ITC mismatches
Match purchases with GSTR-2B, fix mismatches and handle suppliers who don't file.
10
Got an ITC mismatch notice? How to respond to DRC-01C and ASMT-10
Why the portal flags ITC differences, how to find the real gap and how to reply before it turns into a demand.
11
Case study: ₹40 lakh ITC mismatch and a DRC-01C intimation
A worked example of a distributor whose GSTR-3B ITC exceeded GSTR-2B, how the gap was found and how the notice was answered.