Manner of taking input tax credit :
Every registered taxable person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49 of CGST Act, 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 – section 16(1) of CGST Act.
Electronic Credit Ledger means the electronic credit ledger referred to in section 49(2) of CGST Act – section 2(46) CGST Act.
“Electronic credit ledger” is the input tax credit ledger in electronic form maintained at the common portal for each registered taxable person. This credit can be utilized for GST liability as specified in section 49(4) of CGST Act.
“Input” means any goods other than capital goods, used or intended to be used by a supplier in the course or furtherance of business – section 2(59) of CGST Act.
“Input Service” means any service used or intended to be used by a supplier in the course or furtherance of business – section 2(60) of CGST Act.
“Outward supply” in relation to a person, means supply of goods or services, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other mode, made or agreed to be made by such person in the course or furtherance of business- section 2(83) of CGST Act.