Many businesses know that Input Tax Credit reduces their GST liability — but not all know when they can claim it.
Claiming ITC too early or without meeting eligibility conditions can lead to reversal, penalties, or notices from the tax department.

Let’s break down the rules, timing, and restrictions every business should understand before claiming ITC.

When Can You Claim ITC under GST?

1️⃣ When You Receive the Goods or Services

ITC can be claimed only after receipt of goods or services.

• For goods, physical delivery must have occurred.

• For services, the service must have been rendered.

Partial delivery = partial ITC claim allowed.

2️⃣ When the Supplier Files GSTR-1

You can only claim ITC once the supplier uploads the invoice in GSTR-1 and it appears in your GSTR-2B.
If it’s not reflected, you must wait until the supplier files their return.

3️⃣ When You File Your GSTR-3B

Claim ITC in the same month you file your GSTR-3B, provided all conditions are met.

If missed, you can claim ITC later — but only up to 30th November following the end of the financial year (as per latest GST amendment).

4️⃣ Payment to Supplier Within 180 Days

If payment is not made to the supplier within 180 days from invoice date, the ITC must be reversed. It can be re-claimed after payment is made.

5️⃣ Capital Goods and Installments

For capital goods purchased on EMI, you can claim ITC on the entire tax amount upfront, not per installment.

Situations Where You Cannot Claim ITC Immediately

• Invoice not reflected in GSTR-2B.

• Supplier has not paid GST to the government.

• Goods received in multiple lots (claim only after final lot).

Practical Tip:

Create an ITC ledger to track when each invoice becomes eligible for ITC — this helps avoid missing deadlines or claiming prematurely.

Knowing when to claim ITC is as important as knowing how. Timing, compliance, and supplier coordination are crucial to keeping your credit valid and your GST filings accurate.

Continue reading:
GST for E-commerce Sellers (Amazon, Flipkart, etc.)
Complete Guide to Input Tax Credit (ITC) under GST
GST for Home Bakers & Cloud Kitchens (2025 Guide)
How to Apply for GST Refunds & Track Application Status
ITC Not Allowed? 10 Expenses You Can’t Claim Credit For (2025 Update)
Common GST Filing Mistakes Small Businesses Make (and How to Fix Them)