Provisional acceptance of ITC :

The first aspect that the framework recognises is that ITC is a matter of the claim of the taxpayer availing it and the taxpayer has to be initially allowed the ITC he has claimed. Therefore, as provided in section 28.the ITC claimed by a taxpayer is allowed every taxpayer to on provisional basis and he is allowed to utilise it for payment of tax declared in his return

Therefore, even before the ITC claim of the taxpayer is matched and finally allowed, it can be availed for payment of taxes in the return. However, the taxpayer cannot utilise the credit for payment of any other liability like demand created as a result of audit.