# Seven Conditions to Avail Input Tax Credit [Section 16]
A registered person can avail ITC only if ALL seven conditions are simultaneously satisfied. Missing even one condition blocks the credit.
## The Seven Conditions
| # | Condition | Core Requirement |
|---|---|---|
| 1 | Possession of tax paying document | Hold valid invoice/debit note/bill of entry etc. |
| 2 | Details uploaded by supplier | Invoice must appear in your GSTR-2B |
| 3 | Goods/services received | Actual receipt is mandatory |
| 4 | ITC not restricted in GSTR-2B | GSTR-2B itself marks some entries as ineligible |
| 5 | Tax paid to government | Subject to supplier filing GSTR-3B |
| 6 | Return filed u/s 39 | Recipient must file GSTR-3B to claim |
| 7 | Credit not blocked u/s 17(5) | Item must not fall in blocked credit list |
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## Condition 1: Possession of Valid Tax Paying Document
Valid documents include:
- Invoice, debit note, revised invoice
- Self-invoice with proof of tax payment (under RCM)
- ISD document (Input Service Distributor)
- Bill of entry (for imports)
NOT valid documents:
- Delivery challan
- Bill of supply
Mandatory particulars on the document:
- GSTIN of supplier and recipient
- Description and value of goods/services
- Tax amount
- Place of supply (for interstate supply)
E-invoice rule: If the supplier is required to issue an e-invoice, then any invoice without a valid IRN (or with wrong IRN) is NOT a valid tax paying document → ITC denied.
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## Condition 2: Invoice Details Uploaded by Supplier (GSTR-2B Match)
ITC can be availed only on invoices/debit notes reflected in the recipient's GSTR-2B. The supplier must have:
- Furnished details in GSTR-1 (as amended in GSTR-1A) or through IFF (Invoice Furnishing Facility), and
- Such details must be communicated to recipient via GSTR-2B.
Exceptions — ITC allowed even WITHOUT GSTR-2B reflection:
- IGST paid on imports
- RCM supplies
- Credit received from ISD
Tip: Quarterly filers upload invoices via IFF; monthly filers via GSTR-1.
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## Condition 3: Receipt of Goods or Services
Receipt is mandatory. Three special sub-rules:
1. Ex-factory basis: Delivery to a transporter at factory gate is deemed delivery to recipient.
2. Goods received in lots/installments: ITC available only on receipt of the last lot.
3. Bill-to-Ship-to model: If goods are shipped to a third person on the recipient's instruction, the recipient (bill-to party) is deemed to have received them.
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## Condition 4: ITC Not Restricted in GSTR-2B
GSTR-2B itself classifies inward supplies into 'ITC available' and 'ITC not available' (e.g. POS in different state). No ITC on restricted entries.
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## Condition 5: Tax Actually Paid to Government
Self-assessed ITC is allowed initially, BUT:
- If supplier shows outward supply in GSTR-1 but fails to file GSTR-3B for that period by 30th September following end of FY,
- The recipient must reverse the ITC in any GSTR-3B filed by 30th November following that FY.
- If supplier later files GSTR-3B, recipient can re-avail the credit.
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## Condition 6: Filing of Return u/s 39
Recipient must file GSTR-3B; without filing the return, no ITC is realised.
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## Condition 7: Credit Not Blocked u/s 17(5)
Covered separately under blocked credit lesson.