The Conditions in Section 16
Credit is not a right that attaches to a purchase; it is a statutory entitlement that survives only if six things are true at once, and the one the client cannot control, that the supplier actually paid the tax, is the one the department attacks.
- 4 pages
- 32
- Word and PDF
- 13 September 2026
The 2 formats inside
- 1Indemnity and undertaking on input tax credit, for inclusion in a purchase contracts.16(2)(c) · s.16(2)(aa) · Rule 37AOn its own₹149
- 2Declaration by the supplier that tax charged has been paid to the Governments.16(2)(c) · s.16(2)(aa)On its own₹149
Read the opening
The first part of “Indemnity and undertaking on input tax credit, for inclusion in a purchase contract”, as it downloads. Blanks are highlighted.
Clause to be inserted in the purchase order, supply agreement or works contract
[Clause number of this GST clause in the contract]. Goods and Services Tax — compliance, indemnity and withholding
[Clause number of this GST clause in the contract].1 Representations. The Supplier represents and warrants that it is registered under the Central Goods and Services Tax Act 2017 and the corresponding State or Union Territory legislation bearing GSTIN [Supplier's GSTIN], that such registration is valid and subsisting and has not been suspended or cancelled, and that it shall keep the Purchaser informed in writing within seven days of any application for cancellation, any suspension, any cancellation, or any change in its constitution or place of business affecting that registration.