Section 2(62) - Definition of "input tax" under CGST Act
2(62).1 Definition of Input Tax
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in relation to a RP, means CGST, SGST, IGST or UGST charged on any supply of goods or/and services made to him and includes— (a) IGST charged on import of goods; (b) tax payable under RCM u/s 9(3) and (4); (c) tax payable under RCM u/s 5(3) and (4) of IGSTA, 2017; (d) tax payable under RCM u/s 9(3) and (4) of SGSTA, 2017; or (e) tax payable under RCM u/s 7(3) and (4) of UTGSTA, 2017 but does not include the tax paid under the composition levy; |
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Input Tax ≠ Tax paid under composition levy u/s 10 + Cess |
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Input tax = GST Paid on (Outward Supplies + RCM + Import] |
2(62).1 Questions & Answer
Question-1 [ICAI-F-Ch8-1] [ICAI-I-Ch6-8]
What is input tax?
Question-2 [ICSI-E-J18-80-1]
Section 2(62) of the CGST Act, 2017 specifies input tax in relation to a registered person to mean Central Tax, State Tax, Integrated Tax or Union Territory Tax charged on any supply of goods or services or both and also include:
(i) Integrated goods and service tax charged on import of goods
(ii) Tax under the provisions of section 9(3) and 9(4)
(iii) Tax paid under composition levy
(iv) Tax under Union Territory Goods and Service Tax Act
(A) All the above four; (B) (i), (ii) and (iv); (C) (i) and (ii); (D) (ii), (iii) and (iv)
Question-3 [ICSI-E-D21-89-1]
Taxes paid under GST by a registered person are covered both as Input Tax and Output Tax. State as per provisions of CGST Act, 2017, which out of the following are covered in the definition of Input tax.
(i) Tax under RCM
(ii) IGST on imports
(iii) Taxes under Composition levy
(iv) CGST on intra-state services
(A) (i) and (iii); (B) (ii) and (iv); (C) (i), (ii) and (iv); (D) All of the above
Question-4 [ICSI-E-D19-70-1]
Section 2(62) of CGST Act, 2017 specify input tax in relation to a registered person, means the Central Tax, State Tax, Integrated Tax or Union Territory Tax charged on any supply of goods or services or both made to him but does not include :
(A) Integrated goods and service tax charged on import of goods
(B) Tax under the provisions of section 9(3) and 9(4)
(C) Tax paid under composition levy
(D) Tax under Union Territory Goods & Service Tax Act
Question-5 [FAQ-22/12/18-Ch10-5]
Can GST paid on reverse charge basis be considered as input tax?
Ans. Yes. The definition of input tax includes the tax payable under the reverse charge.
Question-6 [FAQ-22/12/18-Ch10-4]
Does input tax includes tax (CGST/IGST/SGST) paid on input goods, input services and capital goods?
Ans. Yes, it includes taxes paid on input goods, input services and capital goods. Credit of tax paid on capital goods is permitted to be availed in one instalment.
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