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CGST Act · Chapter V

Input Tax Credit

Reviewed by Nikhil Gupta · Last reviewed 30 August 2026

Turn purchase-side GST into defensible credit, not merely a ledger balance.

Sections 16–216 section repository pages in rangeLaw cut-off: 26 Jul 2026double-check controls active
Legal-source rule: this chapter map explains and connects the law. The individual section page, operative Rules/notifications and official source determine the final legal position. Enacted but uncommenced changes are not treated as current law.
Chapter in 2 MinutesSection mapQuestionsConnected lawPractical applicationOfficial sources

Chapter in 2 Minutes

  • Eligibility, blocked credit, special situations, job work and ISD are separate tests.
  • Invoice possession alone is not the whole ITC test.
  • Reconcile legal eligibility with return data and payment conditions.
  • Keep an evidence trail for every material ITC position.
Finin2min view: do not jump from a chapter headline to a tax conclusion. First identify the exact section, period, transaction facts, subordinate instrument and any State or judicial overlay.

Section-by-section map

Open the provision page for statutory text, amendment/status treatment and connected material. Historical/omitted provisions remain available only for the period in which they matter.

Section 16Eligibility and conditions for taking input tax creditOpen sectionSection 17Apportionment of credit and blocked creditsOpen sectionSection 18Availability of credit in special circumstancesOpen sectionSection 19Taking input tax credit in respect of inputs and capital goods sent for job workOpen sectionSection 20Manner of distribution of credit by Input Service DistributorOpen sectionSection 21Manner of recovery of credit distributed in excessOpen section

Questions this chapter should answer

  • Can I claim this ITC?
  • Why is eligible ITC missing from return data?
  • Is the credit blocked?
  • Do I need to reverse credit?
  • Should a cost be distributed through ISD?

These questions are written as practical reader prompts rather than keyword lists.

Connected GST resources

GST Returns

Open the connected Finin2min repository or practical guide.

GST Forms and Return-form Register

Open the connected Finin2min repository or practical guide.

GSTR-2B Reconciliation: Vendor ITC Risk Before Filing GSTR-3B

Open the connected Finin2min repository or practical guide.

Blocked ITC Review

Open the connected Finin2min repository or practical guide.

Cross Charge vs ISD

Open the connected Finin2min repository or practical guide.

Practical application

Case 1 — start from facts, not the portal

A business has a real transaction or compliance issue. Identify the relevant section in this chapter, then trace the Rule, form/return, notification/circular and evidence before taking the operational step.

Case 2 — date changes the answer

If the transaction, notice or return belongs to an earlier period, confirm whether an amendment, omission, rate change or procedural transition changes the governing position.

Primary sources and currentness

India Code — CGST Act, 2017
Act, current section list and Schedules.CBIC Tax Information Portal
Current tax-information repository and instrument trail.GST Council
Council material, FAQs and official updates where relevant.

Last architecture review: 26 July 2026. Page-level currentness still follows the status/effective-date controls on the underlying provision and instrument.

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