Why can I not claim credit on an invoice I hold?

Because the claim depends on the invoice appearing in your GSTR-2B, which requires your supplier to have filed. Holding the invoice is not sufficient on its own.

What are blocked credits?

Items where section 17(5) denies credit regardless of business use: most motor vehicles, food and beverages, club memberships and construction of immovable property, among others.

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Input Tax Credit Calculator

Net GST payable after input tax credit. Two things reduce the claim: statutorily blocked credits, and invoices your supplier has not filed, which appear in GSTR-2B or not at all.

Also called: itc calculator, gst credit calculator.

Net GST payable in cash

₹1,70,000

₹1,70,000 payable in cash: 4,50,000 collected less ₹2,80,000 of claimable credit. 35000 is blocked under section 17(5) and cannot be claimed however the purchase was used. 40000 sits on invoices not reflected in GSTR-2B, so it cannot be claimed until the supplier files.

Credit you can claim

₹2,80,000

Credit denied

₹75,000

Credit carried to next period

₹0

Cost of the denied credit

₹75,000

On blocked credits

35000 is blocked under section 17(5) and cannot be claimed however the purchase was used.

On reconciliation

40000 sits on invoices not reflected in GSTR-2B, so it cannot be claimed until the supplier files.

How this is calculated

Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

Output GST collected is reduced by input credit on purchases. Section 17(5) blocks credit on certain items regardless of business use, including most motor vehicles, food and beverages, and construction of immovable property. Separately, credit can only be claimed where the invoice appears in your auto-generated GSTR-2B, which depends on your supplier having filed. A supplier who has not filed effectively costs you the tax you already paid them, which is why reconciliation is a monthly discipline rather than an annual one.

credit reduces the cash payment; excess credit carries forward rather than being refunded

ITC: Input tax credit

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

a period with denied credit

GST collected on sales: ₹4,50,000
GST paid on eligible purchases: ₹2,80,000
GST paid on blocked credits: ₹35,000
GST on invoices not reflected in GSTR-2B: ₹40,000
Credit carried forward: ₹0

Net GST payable in cash₹1,70,000

4,50,000 less 2,80,000 claimable

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credit exceeding output carries forward

GST collected on sales: ₹2,00,000
GST paid on eligible purchases: ₹2,80,000
GST paid on blocked credits: ₹0
GST on invoices not reflected in GSTR-2B: ₹0
Credit carried forward: ₹0

Net GST payable in cash₹0

boundary: excess credit is carried, not refunded

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no output GST leaves nothing payable

GST collected on sales: ₹0
GST paid on eligible purchases: ₹2,80,000
GST paid on blocked credits: ₹0
GST on invoices not reflected in GSTR-2B: ₹0
Credit carried forward: ₹0

Net GST payable in cash₹0

degenerate case

Open this example

Method and limits

What it assumes

A single tax period with the amounts entered.

What it deliberately does not model

The blocked credit list under section 17(5) is detailed and has exceptions.
Reversal rules apply where payment to the supplier is not made within the stipulated period.
Credit distribution across CGST, SGST and IGST is not modelled here.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Why can I not claim credit on an invoice I hold?: Because the claim depends on the invoice appearing in your GSTR-2B, which requires your supplier to have filed. Holding the invoice is not sufficient on its own.
What are blocked credits?: Items where section 17(5) denies credit regardless of business use: most motor vehicles, food and beverages, club memberships and construction of immovable property, among others.