Section 16 – Eligibility and Conditions for Taking Input Tax Credit
Section 16 of CGST Act, 2017 – Eligibility and Conditions for Taking Input Tax Credit Updated on: February 2026 (as amended and applicable till date) Prepared by: Yours Tax Consultant 1. Bare Act Text – Section 16 (Effective Provisions) Section 16(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. Section 16(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 registered supplier or such other tax...