To claim Input Tax Credit (ITC), businesses must maintain and provide specific documents:

Documents Required for ITC Claim

1. Tax Invoice: Issued by the supplier, containing GSTIN, invoice number, date, and tax amount.
2. Debit Note: Issued by the recipient, containing details of tax payment.
3. Bill of Entry: For imports, containing details of customs duty and GST payment.
4. Delivery Challan: For goods transported without invoice.
5. GSTN-2A: Auto-populated statement of inward supplies.
6. GSTN-2B: Auto-populated statement of inward supplies (modified).

Additional Documents (if applicable)

1. Invoice Reference Number (IRN): For e-invoicing.
2. QR Code: For B2C transactions.
3. E-way Bill: For goods transportation.
4. Transportation Receipt: For goods transportation.
5. Proof of Payment: For tax payment.

Conditions for ITC Claim

1. Possession of Documents: Maintain original documents.
2. GST Registration: Supplier and recipient must be GST-registered.
3. Tax Payment: Tax must be paid by the supplier.
4. Time Limit: Claim ITC within the specified time limit.

ITC Claim Process

1. Verify Documents: Ensure accuracy and completeness.
2. File GSTR-3B: Claim ITC in GSTR-3B return.
3. Reconcile ITC: Reconcile ITC with GSTR-2A.

Consequences of Incorrect ITC Claim

1. Penalties: Up to ₹25,000.
2. Interest: 18% per annum.
3. Recovery: Recovery of incorrectly claimed ITC.

Best Practices

1. Maintain Accurate Records: Ensure accurate documentation.
2. Verify Supplier’s GSTIN: Verify supplier’s GSTIN.
3. Reconcile ITC Regularly: Regularly reconcile ITC.

References

1. GST Act, 2017.
2. GST Rules, 2017.
3. CBIC notifications.

Additional Resources

1. GST portal (gst.gov.in).
2. GST Council website (gstcouncil.gov.in).
3. CBIC website (cbic.gov.in).