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All QuestionsCategory: GST ConsultancyHow to take input tax credit of service taken for long duration
Profile photo of Puneet KalraPuneet Kalra asked 4 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?

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5 Answers
Profile photo of DHANANJAY KUMAR SONIDHANANJAY KUMAR SONI answered 4 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.

Profile photo of Puneet KalraPuneet Kalra answered 4 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.

Profile photo of DHANANJAY KUMAR SONIDHANANJAY KUMAR SONI answered 4 years ago

Please see section 16 (2) (d) last paragraph of cgst act .no any daoutfuu u are avail itc.

Profile photo of DHANANJAY KUMAR SONIDHANANJAY KUMAR SONI answered 4 years ago

 you do not wait to end of service.you can take credit initially at time of payment and invoice.

Profile photo of Puneet KalraPuneet Kalra answered 4 years ago

OK Sir. Thanks for your reply