Please also refer the case JLC Electromet Pvt. Ltd. Vs ACIT (ITAT Jaipur). I’m trying to analyse only some of the provisions applicable, only for understanding purpose. As per Section 195 of Income Tax Act, any person who makes payment to non-resident by way of interest (except the interest as specified in Sections 194LB or […]
Let us discuss the practical process/journal entries of availing ITC restricted to 20% more of invoices uploaded by the suppliers in our books of accounts.
Decoding Rule 36(4) of CGST: ITC available only 20% more of Invoices uploaded by the Supplier Among all the confusions and complexities, here we have one more, by the Notification No.49/2019-Central Tax dated 9th October 2019 which inserts a sub rule (4) in Rule 36 of CGST Rules as below: “(4) Input tax credit to […]
We are well aware that as per Section 22 of CGST Act, GST registration is required if the supply of goods or services exceeds the value of Rs.20 lakhs in a year. With effect from 1st April 2019 this threshold limit has been increased from Rs.20 lakhs to Rs.40 lakhs only for supply of goods. […]
Section 19 of CGST Act prescribes the provisions for taking input tax credit on inputs and capital goods sent out for job work. Let’s discuss the same here. 1. A principal who sends out inputs or capital goods to the job worker for job work purpose is entitled to take input credit on such inputs […]
According to section 15 of the CGST Act, the value of supply is the transaction value which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient are not related and the price is the sole consideration for the supply. However while […]
Who is Input Service Distributor (ISD) According to section 2(61), Input Service Distributor means 1. An office who supplies goods or services or both, and 2. Receives input services with a valid invoice as per section 31, and 3. Issues a prescribed document for the purpose of distribution of credit of IGST, CGST, SGST or […]
As per Section 18 of CGST Act, there are possibilities and conditions for the availability of input tax credit in special circumstances as below: (a) Availability of Input tax credit in case of Compulsory Registration When a person becomes liable to registration and he has applied for registration within 30 days from the date he […]
According to Section 17, the input tax credit is available only to the extent of the goods or services used for the business purpose or effecting taxable supplies including zero rated supplies as discussed earlier in Rule 42 & 43. Apart from the above, there are goods and services which are not eligible for input […]
Subject to the provision of sub-section (3) of Section 16 of CGST Act, where the registered person claimed depreciation on tax amount charges on the cost of capital goods under Income Tax Act, 1961, he is not allowed to take the input tax credit of that tax amount. And, as per the provisions of sub-sections […]
