GST Input Tax Credit: Delivery Date Over Payment 📅

If you make a purchase and pay for it in March 2025, but receive the delivery in April 2025, you can claim the Input Tax Credit (ITC) in April 2025. 

This aligns with the time of supply provisions under GST, which determine when the tax liability arises. For goods, the time of supply is the earlier of the date of invoice issuance, the date of payment receipt, or the date of delivery. In this case, since the delivery occurred in April, that’s when the ITC becomes available.  

📌 Key Takeaway: Payment timing doesn’t determine your ITC eligibility; delivery does. So, plan your purchases and deliveries accordingly to optimize your tax credits. 

#GST #InputTaxCredit #TaxTips #BusinessFinance #GSTCompliance #TaxPlanning #FinanceTips #gst2025


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