Input Tax Credit for Non-Resident Taxable Person Under GST

Under the CGST Act, a non-resident taxable person who has registered under section 25 is not eligible to claim Input Tax Credit (ITC) on goods or services, except for goods imported by them. A non-resident taxable person is an individual who conducts temporary business in India but does not have a place of business in the country. However, ITC can only be claimed on goods imported from outside India, and not on any other input or input services procured within India.

It is important to note that even though ITC cannot be claimed, the non-resident taxable person is still required to pay output taxes on their outward supplies made within India. Therefore, they must factor in the additional cost of not being able to claim ITC on their goods and services when conducting business in India.

In essence, the restriction on claiming ITC is applicable only to non-resident taxable persons who have registered under section 25 of the CGST Act. They can only claim ITC on imported goods, and not on any goods or services procured domestically.

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