Explanation
ITC under Section 16 of the CGST Act requires: (1) You possess a tax invoice from a GST-registered supplier. (2) You have received the goods/services. (3) The supplier has filed their GSTR-1 and the invoice appears in your GSTR-2B. (4) You have filed your own GSTR-3B. (5) Payment to the supplier is made within 180 days of the invoice date. ITC cannot be claimed on blocked credits (Section 17(5)): personal consumption, motor vehicles (passenger), food/beverages, club membership, beauty treatment, construction of immovable property (own), etc. GSTR-9 annual return reconciles ITC for the full year. Verify on the GST portal before filing.