• It is quite evident from the provisions of section 16 of CGST / SGST Act and rules 36 and 37 made thereunder that except in case of liability under reverse charge ,the ITC shall be claimed by a taxable person on the basis of Tax Invoice subject to the following conditions, namely-
(i) such person is in possession of the tax invoice .
(ii) such person has received the concerned supply .
(iii) the tax charged on such invoice has been actually paid to the Government either in cash or through utilization of ITC admissible in respect of such supply.
(iv) return has been filed under section 39.
• If aforesaid taxable person fails to pay the value of the supply alongwith the requisite tax to the supplier within 180 days from the date of issuance of such tax invoice , then such ITC as claimed earlier on the basis of such tax invoice shall get reversed and the amount of such ITC shall be added to the output tax liability of such taxable person for the month in which 181st day from the date of issuance of such invoice lie.
• The concerned taxable person shall have to furnish the details of such amount not paid alongwith the amount of related ITC availed in FORM GSTR-2.
• Such taxable person shall be liable to pay the amount of earlier claimed ITC alongwith the interest as envisaged under section 50 of the said Acts.
• The third proviso of sub-section (2) of section 16 envisages that the recipient i.e. the aforesaid taxable person shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply alongwith the tax payable thereon.
• In case of reverse charge , the ITC shall be claimed only after payment of the tax on the basis of the invoice issued by the registered recipient.
• No ITC shall be availed by a registered person in respect of any tax that has been paid in pursuance of any order by which demand has been confirmed on account of any fraud , willful misstatement or suppression of facts.