Section 16 of CGST ACT – Eligibility and conditions for taking input tax credit

(1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.
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(2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,

(a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed;

(b) he has received the goods or services or both.

Explanation.For the purposes of this clause, it shall be deemed that the registered person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise;

(c) subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilization of input tax credit admissible in respect of the said supply; and

(d) he has furnished the return under section 39:

Provided that where the goods against an invoice are received in lots or installments, the registered person shall be entitled to take credit upon receipt of the last lot or installment:
Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be
prescribed:
Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon.
(3) Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the provisions of the Income-tax Act, 1961, the input tax credit on the said tax component shall not be allowed.
(4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier.

CHAPTER V

INPUT TAX CREDIT

Chapter V of the CGST Act,2017 covers six sections relating to  INPUT TAX CREDIT. The following sections from the CGST Act,2017 are available for your ready reference.
Section 16 – Eligibility and conditions for taking input tax credit
Section 17 –  Apportionment of credit and blocked credits
Section 18 – Availability of credit in special circumstances
Section 19 – Taking input tax credit in respect of inputs and capital goods sent for job work
Section 20 – Manner of distribution of credit by Input Service Distributor
Section 21 – Manner of recovery of credit distributed in excess

Section 16 of CGST ACT – Eligibility and conditions for taking input tax credit, section 16(2) of gst act, section 16(4) of cgst act, section 16(2) of cgst act, section 16(4) of gst act, section 16(2) of cgst act 2017, section 49 of cgst act, section 16(9) of gst act, section 16 of gst act pdf, section 16 of cgst act 2017, section 16(4) of cgst act, section 16(2) of cgst act, section 16(4) of gst act, section 16(2) of gst act, section 16(2) of cgst act 2017, section 16(9) of gst act, section 16 of gst act pdf, section 16(9) of gst act, gst section 16(1), section 42(2) of cgst act, section 17 of gst act, section 17 of cgst act, section 49 of cgst act, section 16 of igst act, section 42 of cgst act