Section 41 of CGST Act 2017: Availment of Input Tax Credit (ITC)

Provisions under Section 41 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Availment of Input Tax Credit (ITC)”:

Section 41 of CGST Act 2017: Claim of Input Tax Credit in Returns and Provisional Acceptance thereof (CHAPTER IX – RETURNS)

(1) Every registered person shall, subject to such conditions and restrictions as may be prescribed, be entitled to take the credit of eligible input tax, as self-assessed, in his return and such amount shall be credited on a provisional basis to his electronic credit ledger.

(2) The credit referred to in sub-section (1) shall be utilised only for payment of self-assessed output tax as per the return referred to in the said sub-section.

Section 41 of CGST Act 2017: Availment of Input Tax Credit (CHAPTER IX – RETURNS) [Refer Note 1]

(1) Every registered person shall, subject to such conditions and restrictions as may be prescribed, be entitled to avail the credit of eligible input tax, as self-assessed, in his return and such amount shall be credited to his electronic credit ledger.

(2) The credit of input tax availed by a registered person under sub-section (1) in respect of such supplies of goods or services or both, the tax payable whereon has not been paid by the supplier, shall be reversed along with applicable interest, by the said person in such manner as may be prescribed:

Provided that where the said supplier makes payment of the tax payable in respect of the aforesaid supplies, the said registered person may re-avail the amount of credit reversed by him in such manner as may be prescribed.

Amendments History:

1. Section 41 substituted vide Section 106 of the Finance Act 2022 (GOI Notification dated 30/03/2022). Subsequently, CBIC notifies 01/10/2022 as the commencement date vide Central Tax Notification 18/2022.

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Note: The CGST Act 2017 has been notified vide GOI Notification dt. 12/04/2017, which has subsequently been amended through CGST (Extension to J&K) Act 2017, Finance Act 2018, CGST Amendment Act 2018, Finance Act 2019, Finance Act 2020, Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020, Finance Act 2021, Finance Act 2022 including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective CGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.