Key facts
- Time limit to claim
- 30 Nov of next FY or annual return, whichever earlier
- Matching rule
- Rule 36(4) — invoice must appear in GSTR-2B
- Blocked credits
- Section 17(5) — motor vehicles, food, club fees, etc.
- Reversal
- Rule 42/43 — exempt supplies, personal use
Section 16 of the CGST Act lists 4 conditions to claim ITC: (a) you possess a tax invoice; (b) you have received the goods/services; (c) the supplier has paid tax to the government and filed the return; and (d) you have filed your own return. Rule 36(4) operationalises (c) — credit is only available if the invoice appears in your GSTR-2B for that month.
If you do not pay the supplier within 180 days, ITC must be reversed with interest (Rule 37). Section 17(5) blocks credit on motor vehicles for personal use, food & beverages, outdoor catering, health insurance (except mandated), club memberships, works contract for immovable property (except plant & machinery), and goods given as free samples.
For businesses with both taxable and exempt supplies, Rule 42 (input services) and Rule 43 (capital goods) prescribe a proportionate reversal formula.
FAQs
What if my supplier files late?
ITC becomes available the month the invoice appears in your GSTR-2B. Recovery is possible in any subsequent month until 30 Nov of the following FY.
Can I claim ITC on company-leased cars?
Only if the vehicle is used for further supply of vehicles (dealers), passenger transport (cabs), goods transport (trucks), or driving instruction. All other cases — blocked.
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Last updated: 22 May 2026