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MCQs · Q5

Q.Which of the following is a necessary condition for a registered dealer to claim Input Tax Credit on a purchase?
(A) The dealer's total annual turnover must exceed one crore rupees
(B) The purchase must have been made from a supplier located in a different State
(C) The dealer must possess a valid tax invoice and must have actually received the goods or services
(D) The goods purchased must be exported outside India

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To claim Input Tax Credit, a registered dealer must, among other conditions: possess a valid tax invoice (or debit note) from a registered supplier; have actually received the goods or services; have the tax on that supply actually paid to the government by the supplier; and have furnished the required GST return, with the goods/services used in the course of business.

Option-by-option analysis:

  • (A) Incorrect — a turnover threshold determines whether a dealer must REGISTER under GST at all, not whether a registered dealer can claim ITC on a specific purchase. …

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