Section 41 – Claim of Input Tax Credit and its provisional acceptance
Section 41 of CGST Act, 2017 – Claim of Input Tax Credit and Provisional Acceptance Updated on: February 2026 (as applicable till date) Prepared by: Yours Tax Consultant 1. Background of Section 41 Section 41 governs the claim and utilisation of Input Tax Credit (ITC) by a registered person. This section has undergone major amendment to align GST with a self-assessment based ITC system . 2. Statutory Provision – Section 41 (As Amended) Section 41(1): Every registered person shall be entitled to take the credit of eligible input tax, as self-assessed, in his return and such amount shall be credited to his electronic credit ledger. Section 41(2): If the input tax credit availed by a registered person is not paid to the Government by the supplier, such credit shall be reversed by the recipient along with applicable interest. The recipient shall be entitled to re-avail the credit on payment of tax by the supplier. 3. Key Change After Amendment Earlie...