by tejas goenka matching of invoice under gst is a brilliant move to check fraud and drive more businesses to the formal economy but by taking it one step further and linking tax payment by a supplier to the availability of input credit to the buyer the beauty of the system completely breaks down to understand this it is very important to know what input credit will do one of the fundamental features of gst is seamless flow of input credit across the chain from the manufacture of goods till it is consumed and across the country in this section lets discuss about various conditions laid down by law to avail input credit on supply of goods or services all of the following conditions need to be satisfied to avail input credit the dealer should be in possession of tax invoice debit or credit note supplementary invoice issued by a supplier registered under gst act the said goodsservices have been received returns form gstr3 have been filed the tax charged has been paid to the government by the supplier what do these conditions imply once form gstr1 outward supply details is filed by the supplier recipient has a visibility of the purchase through the auto populated form gstr2a inward supplies details after necessary modification additions if any and acceptance in form gstr 2 the input credit will be credited to the recipients electronic credit ledger on a provisional basis the addition and modification done by the recipient in form gstr2 will be made available to supplier in form gstr 1a for his acceptance input credit will be available only when the monthly returns form gstr3 are filed by the supplier along with payment tax the final acceptance of input tax credit will be communicated in form gst mis1 let us understand this with an example super cars ltd a manufacturer of cars purchased 30 tons of steel from ratna steels ratna steels supplied steel and issued tax invoice on 5th july with gst of 2 40000 with this example let us examine the process to understand the flow of availing input credit 1 on 5th july super cars ltd satisfy the condition of receiving goods and tax invoice 2 on 10th august ratna steels furnishes outward supply through form gstr1 return 3 from 11th august super cars ltd has visibility of their purchase through autopopulated form gstr2a 4 from 11th to 15th august super cars ltd can make additions or modifications if any in this example it is assumed that there are no additions or modifications and super cars ltd submits the form gstr2 5 now itc of rs 240000 is credited to super cars ltd on a provisional basis 6 once the form gstr3 monthly return along with tax payment is remitted by ratna steels super cars ltd is eligible for itc of rs 240000 7 the final acceptance of itc will be communicated in form gst mis1 note gstr1 furnish all outward