CA Final Input Tax Credit — practice questions
31 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Final Input Tax Credit in the app →Sec 17(5)(h) — goods LOST, STOLEN, DESTROYED, written off, or DISPOSED of by way of gift or free samples:IGST credit utilisation order under Rule 88A:ITC on tax paid under Sec 74 (suppression-related), Sec 129 (detention), Sec 130 (confiscation):Section 18(1)(c) — switch from COMPOSITION to REGULAR — taxpayer is entitled to take ITC on:Sec 17(5)(b) — ITC is BLOCKED on:Banking company / financial institution can opt under Sec 17(4):Rule 43 — ITC on capital goods used partly for business + taxable supplies and partly for other purposes — comReversal under Rule 37 — failure to pay supplier within 180 days — the recipient must:Sec 18(2) — ITC under Sec 18(1) cannot be availed in respect of any supply of goods/services after the expiry Section 19 — Job Work — principal can take ITC on inputs sent for job work:Sec 17(5)(c)/(d) — works contract service and goods/services received for construction of an immovable propertSec 16(2) proviso — if the recipient fails to pay the supplier within 180 days from invoice date:Rule 42 — common credit (used partly for business + taxable and partly for exempt + non-business): attribute tPlant and Machinery for Sec 17 EXCLUDES (and hence ITC is BLOCKED on them under Sec 17(5)(c)/(d)):Section 18(4) — when a registered person switches from REGULAR to COMPOSITION scheme:Sec 17(5)(e) — ITC is BLOCKED on goods or services received by a taxable person for which the supplier has paiSec 18(6) — when capital goods on which ITC has been availed are SUPPLIED (sold) — the amount payable is the HSection 17(2) — ITC where supplies are used partly for taxable + zero-rated and partly for exempt + non-busineFree samples and gifts on which ITC was NOT taken at the time of input procurement:ITC reflected in GSTR-2B is the basis for self-assessed ITC. If a supplier's invoice does NOT appear in GSTR-2Sec 17(5) blocks ITC on certain supplies even if used in business. Which is BLOCKED?Section 16(1) of the CGST Act provides the basic entitlement to ITC. A registered person is entitled to ITC onSec 16(2) prescribes four conditions for availing ITC. Which is NOT one of them?Sec 18(1)(a) — a person who becomes liable to register and obtains registration is entitled to take ITC on:Sec 19(3) — inputs sent for JOB WORK must be returned (or supplied from job-worker's premises) within:Sec 16(2)(c) — ITC is conditional upon tax being PAID by the supplier to the Government. CBIC clarified this vSec 16(4) — time limit for availing ITC for a particular financial year is the EARLIER of:Sec 16(2)(d) — fourth condition for availing ITC:CGST credit can be utilised for payment of:Section 18(3) — transfer of unutilised ITC on SALE / MERGER / AMALGAMATION / LEASE / TRANSFER of business:Y Ltd received an invoice dated 15 March 2024 with GST of Rs 18,000. Y Ltd. forgot to claim the ITC for FY 202