Page 175 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] IN RE : YKK INDIA PVT. LTD. 685
(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 re-
spect of such supply has been actually paid to the Govern-
ment, either in cash or through utilisation 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 instalments, the registered person shall be entitled to
take credit upon receipt of the last lot or instalment :
Provided further that where a recipient fails to pay to the sup-
plier of goods or services or both, other than the supplies on
which tax is payable on reverse charge basis, the amount to-
wards 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 in-
put tax credit availed by the recipient shall be added to his
output tax liability, along with interest thereon, in such man-
ner 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 com-
ponent of the cost of capital goods and plant and machinery under the pro-
visions 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 re-
spect of any invoice or debit note for supply of goods or services or both af-
ter 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 an-
nual return, whichever is earlier.
16.2 A plain reading of the aforesaid provisions of Section 16 provides
that in order to be entitled to take input tax credit, the following conditions are
required to be fulfilled :
(i) The person availing the credit should be a registered person;
(ii) The person availing input tax credit is in possession of a tax invoice
or debit note issued by a supplier registered under this Act;
(iii) The credit should be of input tax charged on any supply of goods or
services or both to the registered person;
(iv) The person availing input tax credit should have received the goods
or services or both;
GST LAW TIMES  26th March 2020  271