Puneet Kalra asked 7 years ago
How to take input tax credit of service taken for long duration
Hi,
I need help in understanding how to take input in the following 2 scenarios:
Case 1: I’ve taken 3 months service from a company. During these 3 months, they will review my business on a weekly basis and help me grow. I paid for this service in Mid March and received an invoice. I started availing their services which will continue till June 2018. Can I take the entire input tax credit along with the GSTR 3B of March?
Case 2: I’ve taken a web hosting service for hosting a website for a duration of 3 years. I paid the entire amount in March and received the invoice. Hosting will continue till March 2021. Can I take entire input tax credit along with GSTR 3B of March or there will be some way?
DHANANJAY KUMAR SONI answered 7 years ago
the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of services along with tax payable thereon.
Puneet Kalra answered 7 years ago
Thanks sir for your reply.
I was relating this to goods scenario…In case of goods, where recipient get goods in multiple installments, then recipient can take input credit only after last installment of goods.
So, what I understood that I do not need to wait for service to end. I can take credit initially at the time of payment and invoice.
DHANANJAY KUMAR SONI answered 7 years ago
Please see section 16 (2) (d) last paragraph of cgst act .no any daoutfuu u are avail itc.
DHANANJAY KUMAR SONI answered 7 years ago
you do not wait to end of service.you can take credit initially at time of payment and invoice.
