Section 16 — Eligibility & Conditions for Taking ITC
Section 16 CGST: 4 conditions to claim Input Tax Credit, 180-day payment rule & time limit explained for CA Inter May 2026 exams.
Paper 3 — Taxation · Chapter
GST — Input Tax Credit
CGST Act sections 16–21 — eligibility, conditions, blocked credits, apportionment, credit on capital goods, distribution by ISD. The most-tested GST chapter; 8–10 marks.
6 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.
All lessons
1
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2
Section 17 — Apportionment of Credit & Blocked Credits
Section 17 CGST: blocked credits list & proportionate ITC apportionment for CA Inter — motor vehicles, construction, food, banking 50% rule
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3
Section 18 — Availability of Credit in Special Circumstances
CGST Section 18 explained: ITC on opening stock for new registrants, reversal on composition switch, and capital goods rules — key for CA In
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4
Section 19 — ITC on Inputs/Capital Goods Sent for Job Work
CGST Section 19: ITC on inputs & capital goods sent for job work — 1-year/3-year return rules, deemed supply consequences, and the moulds/to
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5
Section 20 — Manner of Distribution of Credit by ISD
CGST Section 20 explained: how an ISD distributes input tax credit to branches using pro-rata turnover formula — key for CA Inter May 2026 G
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6
Section 21 — Manner of Recovery of Credit Distributed in Excess
Section 21 CGST Act: How excess ITC distributed by an ISD is recovered from recipients with interest under Section 73 or 74. Key for CA Inte
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