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: Availment of Input Tax Credit (CHAPTER IX – RETURNS) [section 41 substituted from 01/10/2022: 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, followed with Notification 18/2022 on  commencement date of 01/10/2022. Section 41 before substitution:

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 substituted from 01/10/2022: refer Note 1]

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