Eligibility of ITC based on Invoice date vs. Goods receipt date under GST

Question: If entry in books of account of a purchase invoice is made as per invoice date and ITC is taken on the basis of invoice date, is it ok or not? Supposed invoice date 4/03/20 and goods received 5/04/20, then can the assessee take ITC on 04/03/20 or not?

Answer: section 16 (2) of the CGST Act, 2017 restricts the availability of Input Tax Credit till the actual receipt of goods or services by the recipient.  Thus, you can avail the Input Tax Credit only after you have received both tax invoice of supply and goods / services.

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