Section 16: Eligibility and conditions for taking input tax credit

Q: What does Section 16 of The State Goods and Services Tax Act, 2017 (Model) (SGST) deal with?

Section 16 SGST pertains to "Eligibility and conditions for taking input tax credit". It is part of the The State Goods and Services Tax Act, 2017 (Model), a legislation enacted by the Parliament of India. Section 16 of The State Goods and Services Tax Act, 2017 (Model) (SGST) governs eligibility and conditions for taking input tax credit. As verified on 22 May 2026.

Q: Is Section 16 SGST still in force?

Yes, Section 16 of the The State Goods and Services Tax Act, 2017 (Model) is currently in force across the Republic of India.

Q: What is धारा 16 SGST?

धारा 16 SGST is the Devanagari Hindi reference for Section 16 of the The State Goods and Services Tax Act, 2017 (Model). Section 16 of The State Goods and Services Tax Act, 2017 (Model) (SGST) governs eligibility and conditions for taking input tax credit. As verified on 22 May 2026.

Q: What is Dhara 16 SGST?

Dhara 16 SGST is the Roman Hindi reference for Section 16 of the The State Goods and Services Tax Act, 2017 (Model). "Dhara" means "Section" in Hindi. Section 16 of The State Goods and Services Tax Act, 2017 (Model) (SGST) governs eligibility and conditions for taking input tax credit. As verified on 22 May 2026.

Q: How to cite Section 16 of The State Goods and Services Tax Act, 2017 (Model)?

Cite as: "Section 16, The State Goods and Services Tax Act, 2017 (Model) (SGST)" in legal briefs. For academic writing, use the BlueBook format: The State Goods and Services Tax Act, 2017 (Model), 2017, § 16 (India).

Law on Tips Editorial Board

(1)

Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.

(2)

Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless, -

(3)

Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the provisions of the Income-tax Act, 1961, the input tax credit on the said tax component shall not be allowed.

(4)

A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier.