Explain the mechanism under the CGST Act, 2017 for claiming Input Tax Credit while making payment of Taxes.

Eligibility and Conditions for taking Input Tax Credit 1. General Power to take credit [Section 16(1)]: Every registered person shall, subject to such conditions and restriction as may be prescribed and in the manner specified in section 49, be entitled to take credit or 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. 2. Conditions for taking credit [Section 16(2)]: Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless; Invoice: He is in possession of a tax invoice or debit not issued by supplier registered under this Act, or such other tax payment documents as may be prescribed; Receipt: He has received the goods or services or both. Tax actually paid: Subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilization of input tax credit admissible in respect of the said supply; and Return furnished: He has furnished the return under section 39. The following points may also be taken: Receipt of goods in lots against an Invoice: where the goods against an invoice are received in lots or installments, the registered person shall be entitled to take credit upon receipt of the last lot or installment. ITC availed to be paid along with interest if payment not made in 180 days of date of invoice: where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed. Credit can be availed if Payment is made subsequently: The recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon. Section 16(3) - ITC not allowed in respect of tax component of capital goods if depreciation claimed on in under Income tax Act: Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the provisions of the Income-tax Act, 1961, the input tax credit on the said tax component shall not be allowed. Section 16(4)-Time limit for availing of Input Tax Credit: A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier.