CGST Section 41: Availment of Input Tax Credit (ITC)

Provisions under Section 41 of the CGST Act 2017 relating to “Availment of Input Tax Credit (ITC)”:

Section 41: Availment of Input Tax Credit (CHAPTER IX: RETURNS) [*1&2]

(1) Every registered person shall, subject to such conditions and restrictions as may be prescribed, be entitled to avail the credit of eligible input tax, as self-assessed, in his return and such amount shall be credited to his electronic credit ledger.

(2) The credit of input tax availed by a registered person under sub-section (1) in respect of such supplies of goods or services or both, the tax payable whereon has not been paid by the supplier, shall be reversed along with applicable interest, by the said person in such manner as may be prescribed:

Provided that where the said supplier makes payment of the tax payable in respect of the aforesaid supplies, the said registered person may re-avail the amount of credit reversed by him in such manner as may be prescribed.

Notes (History of Amendments in Bare Text):

1. CGST Section 41 introduced vide GOI Notification dated 12/04/2017, followed with CBEC Notification 9/2017 on commencement date of 01/07/2017.

2. Section 41 substituted vide Section 106 of the Finance Act 2022, followed with Notification 18/2022 on commencement date of 01/10/2022. Please refer GOI Notification dated 12/04/2017 for text thereof before substitution.