• The Concept of ITC is not fully new, as it existed in the pre-GST regime as well.

• No set-off amongst the various levies imposed by the Central Government and State Government.

• The provisions of the GST Act have widened the scope of ITC.

• The earlier provisions restricted the credit of SAD, only to manufacture of the final product (or) and not to service providers of taxable service.

• The ITC under GST comes out with a comprehensive scheme providing set-off throughout the supply chain.

• Credit of GST paid on capital goods is admissible in the first year itself unlike the previous regime (CENVAT Credit Rules) where credit was restricted to 50 per cent in the first financial year.

ELIGIBLE DOCUMENTS FOR AVAILING ITC (RULE 36) 

• Invoice / debit note issued by a supplier of goods or services or both.

• Self invoice issued in case of payment of GST under Reverse Charge Mechanism.

• Bill of entry or similar document prescribed under Customs Act (applicable in case of availing credit of IGST paid as Customs Duty on import of goods).

• Document issued by the Input Service Distributor.

TIME LIMIT FOR AVAILING ITC [SECTION 16(4)] 

No ITC beyond September of the following Financial Year to which invoice pertains or date of filing of annual return, whichever is earlier.

Note-Section 16 (2) of the CGST Act starts with non-obstante clause, which means it overrides the other provisions of Section 16 of the CGST Act. While Section 16 (4) of the CGST do not start with non-obstante clause and cannot override the other provisions of the Act. •Accordingly, it can be argued that the conditions under section 16 (2) and 16 (4) are laid down differently and the conditions of Section 16 (4) cannot be enforced where they contradict Section 16(2).