input tax credit

Refund of input services under inverted duty structure – VKC Footsteps

Goods and Services Tax - The case of VKC Footsteps – Refund of input services under inverted duty structure The historic judgement of Honorable Gujarat High Court in the case of VKC Footsteps India Pvt Ltd with respect to refund of input services, which otherwise was restricted by the rule. In this case the petitioner is engaged in the business […]...

Read More

Hugger Mugger of net ITC in case of Inverted Duty Structure

Goods and Services Tax - Refunds have always been an integral part of the Indirect tax regime. In the era Service Tax regime, refunds were granted in the case of export of service. However, with the inception of GST and introduction of multiple tax rates, refunds arose on account of inverted duty structure. Inverted duty structure means a scenario wherein [&helli...

Read More

Inverted Duty Structure Refund : Rule 89(5) held to be Ultra Vires

Goods and Services Tax - Recently in the case of VKC Footsteps vs. Union of India [2020-TIOL-1273-HC-AHM-GST] the Gujarat High court has held that Rule 89(5) of the CGST Rules, 2017 is Ultra Vires as it is inconsistent of Section 54(3) of the Parent CGST Act, 2017.The issue examined here was whether it was correct to deny the Refund of […]...

Read More

Interesting Facts about GST Input balance in Electronic Credit Ledger

Goods and Services Tax - Prudent person always keep an eye on his/her funds available in Bank account, Cash/Gold/other valuable assets kept in the Locker at home, market ups-downs in shares invested & NAV of mutual fund units purchased. But have you ever checked your balance of Input Tax Credit (ITC) of GST in the electronic credit ledger available on [&helli...

Read More

VKC Footsteps India Pvt Ltd vs. UOI- Gujarat HC Judgment Analysis

Goods and Services Tax - Analysis of the Landmark Judgment Passed by the Hon’ble Gujarat High Court in the case of VKC Footsteps India Pvt Ltd vs. Union of India & Others dated 24.07.2020 Background & Provisions of the GST Law In GST, Refund of Unutilised Input Tax Credit is dealt with in Section 54(3) of the CGST Act, 2017. […]...

Read More

DGGI books 3 firms for Tax evasion of more than Rs 600 Crore

Goods and Services Tax - A case was booked against M/s. Fortune Graphics Limited, M/s. Reema Polychem Pvt. Ltd. & M/s. Ganpati Enterprises, who were found involved in issuance of invoices without any actual supply of goods....

Read More

Blocked ITC on Construction Activities- Deterrence to Economic Development

Goods and Services Tax - Globe is evidencing an unprecedented health hazard in the form of this pandemic. All economies of the world have bowed down on knees. Role of China is being viewed in suspicion. At this time, India can be a favored destination for converting to next manufacturing hub for the world....

Read More

Credit of CVD & SAD paid post 01.07.2017 under Advance Authorisation Scheme-Importers left remediless

Goods and Services Tax - The GST Policy Wing has vide its Letter dated 22.06.2020 issued its comments on Writ Petitions relating to Transitional Provisions. On the specific issue of credit of CVD and SAD paid on non-fulfilment of export obligations in Advance Authorisation Schemes which was the subject matter of my article last week, the comments of the Policy [&...

Read More

RVAT: Extend due dates for C-form submission & ITC mismatch

Goods and Services Tax - Extension of due date of furnishing of declaration form due to COVID-19 effect Sir the last date of filing of declaration forms is June 30,2020. It is requested to extend the due dates of declaration forms like C-forms from June 30,2020 to September 30,2020. Due to COVID 19 situation, it is very difficult to make the compliance....

Read More

GSTIN Advisory on Composition Scheme, GSTR-1/GSTR-3B/GST ITC-03

Goods and Services Tax - Normal and registered taxpayers who want to opt in for Composition in FY 2020-21 can apply in Form GST CMP02 till 30th June 2020. The taxpayers SHOULD NOT file any GSTR-1/GSTR-3B, for any tax period of FY 2020-21, from any of the GSTIN on the associated PAN, or else they will not be able to […]...

Read More

VKC Footsteps India Pvt Ltd vs. UOI- Gujarat HC Judgment Analysis

Analysis of the Landmark Judgment Passed by the Hon’ble Gujarat High Court in the case of VKC Footsteps India Pvt Ltd vs. Union of India & Others dated 24.07.2020 Background & Provisions of the GST Law In GST, Refund of Unutilised Input Tax Credit is dealt with in Section 54(3) of the CGST...

Read More

Denial of ITC (inverted duty structure) invalid; Rule 89(5) ultra vires section 54(3) Provisions: Gujarat HC

VKC Footsteps India Pvt. Ltd. Vs. Union of India (Gujarat High Court) - High Court held that by prescribing the formula in Sub-rule 5 of Rule 89 of the CGGST Rules,2017 to exclude refund of tax paid on 'input service' as part of the refund of unutilised input tax credit is contrary to the provisions of Sub-section 3 of Section 54 of the CGST Act,2017 which provides for ...

Read More

ITC of GST on Premium paid to DICGC by Banks

In re Uttar Bihar Gramin Bank ( GST AAR Bihar) - AAR held that Bank can avail ITC on fifty percent of GST paid on DICGC premium, as it is statutorily required for the bank to obtain insurance of deposit, which has only been accepted by it in the course of its business or furtherance of business. Claim is allowable under Section 17(4) of CGST Act, ...

Read More

Bail to CA who formed firms which later allegedly claimed fake ITC

Anup Ashopa Vs Union of India (Rajasthan High Court) - Anup Ashopa Vs Union of India (Rajasthan High Court) High Court allowed bail application of the petitioner who is a Chartered Accountant. The allegation against the petitioner who is a Chartered Accountant is of making fake firms who later on claimed input tax credit. Bail is subject to the conditio...

Read More

GST on construction of Water Park, Water Slides, Wave Pool etc.

In re Atriwal Amusement Park (GST AAR Madhya Pradesh) - In re Atriwal Amusement Park (GST AAR Madhya Pradesh) Regarding the eligibility of ITC in case of Input Tax paid on Purchase of Water Slides, we have to state that Water Slides shall fall within the meaning of the term apparatus, equipment and machinery and therefore, shall be eligible for claim of ...

Read More

Submission of correct return under GST

Circular No. 6/2020 - (16/06/2020) - All such tax payers who have not furnished details of ineligible ITC or furnished partial details of ineligible iTC or not reported reversal of ITC fully or partially, are hereby required to correct the mistakes in following manner‑...

Read More

CBIC issues ITC refund under GST of Rs. 2800 crore in 10 days

D.O.No. 10/CH(IC)/2020 - (13/04/2020) - M. Ajit Kumar, Chairman Ministry of Finance Department of Revenue Central Board of Indirect Taxes & Customs North Block, New Delhi-110 001 Tel. No. +91-11-23092849, Fax No. : +91-11-23092890 E-mail : ajit.m@gov.in Date: 13th April 2020 D.O.No. 10/CH(IC)/2020 Dear Colleague The past week has been...

Read More

GST reduced to 5% on MRO services of aircraft with full ITC

Notification No. 02/2020–Central Tax (Rate) [G.S.R. 1209(E).] - (25/03/2020) - CBIC amends Notification No. 11/2017-Central Tax (Rate) dt. 28.06.2017 reducing CGST rate on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft from 18% to 5% with full ITC vide Notification No. 02/2020–Central Tax (Rate) Dated- 25th March, 2020. MINISTRY OF FINANCE (Department...

Read More

UTGST reduced to 5% on MRO services of aircraft with full ITC

Notification No. 03/2020-Union Territory Tax (Rate) [G.S.R. 1211(E).] - (25/03/2020) - CBIC amends Notification No. 11/2017-Union Territory Tax (Rate) dt. 28.06.2017 reducing UTGST rate on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft from 18% to 5% with full ITC vide Notification No. 02/2020–Union Territory Tax (Rate) dated 25th March, 2020 Ministry of Fina...

Read More

IGST reduced to 5% on MRO services of aircraft with full ITC

Notification No. 02/2020–Integrated Tax (Rate) [G.S.R. 1210(E).] - (25/03/2020) - CBIC amends Notification No. 8/2017-Integrated Tax (Rate) dt. 28.06.2017 reducing IGST rate on Maintenance, Repair and Overhaul (MRO) services in respect of aircraft from 18% to 5% with full ITC vide Notification No. 02/2020–Integrated Tax (Rate) Dated 25th March, 2020. MINISTRY OF FINANCE (Depart...

Read More

Recent Posts in "input tax credit"

Refund of input services under inverted duty structure – VKC Footsteps

The case of VKC Footsteps – Refund of input services under inverted duty structure The historic judgement of Honorable Gujarat High Court in the case of VKC Footsteps India Pvt Ltd with respect to refund of input services, which otherwise was restricted by the rule. In this case the petitioner is engaged in the business […]...

Read More

Hugger Mugger of net ITC in case of Inverted Duty Structure

Refunds have always been an integral part of the Indirect tax regime. In the era Service Tax regime, refunds were granted in the case of export of service. However, with the inception of GST and introduction of multiple tax rates, refunds arose on account of inverted duty structure. Inverted duty structure means a scenario wherein [&helli...

Read More

Inverted Duty Structure Refund : Rule 89(5) held to be Ultra Vires

Recently in the case of VKC Footsteps vs. Union of India [2020-TIOL-1273-HC-AHM-GST] the Gujarat High court has held that Rule 89(5) of the CGST Rules, 2017 is Ultra Vires as it is inconsistent of Section 54(3) of the Parent CGST Act, 2017.The issue examined here was whether it was correct to deny the Refund of […]...

Read More

Interesting Facts about GST Input balance in Electronic Credit Ledger

Prudent person always keep an eye on his/her funds available in Bank account, Cash/Gold/other valuable assets kept in the Locker at home, market ups-downs in shares invested & NAV of mutual fund units purchased. But have you ever checked your balance of Input Tax Credit (ITC) of GST in the electronic credit ledger available on [&helli...

Read More

VKC Footsteps India Pvt Ltd vs. UOI- Gujarat HC Judgment Analysis

Analysis of the Landmark Judgment Passed by the Hon’ble Gujarat High Court in the case of VKC Footsteps India Pvt Ltd vs. Union of India & Others dated 24.07.2020 Background & Provisions of the GST Law In GST, Refund of Unutilised Input Tax Credit is dealt with in Section 54(3) of the CGST Act, 2017. […]...

Read More

Blocked ITC under GST – Section 17(5)

A brief list where input tax credit under GST is not available (Section 17(5)) There are some cases where there is no input available under GST to the applicant and there are some exceptions to this, hence to know more about this please read carefully the whole article. 1. Motor Vehicle and other conveyance / […]...

Read More

Refund of ‘Input Services’ along with Inputs under Inverted Duty Structure

It has been almost an eternity since the manufacturing sector is suffering from being burdened with higher rate of taxes paid on availed services which are used significantly for supply of goods with lower rate of taxes. Much to the relief of these manufacturers now, the High Court of Gujarat in the case of VKC […]...

Read More

Input services distributor and cross charge- a step towards legitimate allocation of GST (Comparison, limitations and Suitability)

It should be understand first that GST is tax leviable on supply of Good and Services both. It is consumption / destination based tax which against the previous principle of origin based taxation. Tax is charged on Value Added System (VAT) but business to business supply get credit of tax, with framework of law, and at the end tax goes in...

Read More

Reversal of ITC on Supply of Capital Assets under GST Regime

Since inception of GST there are various contrary views and ambiguity on numerous provisions of GST law and practical difficulty is being faced by taxpayer in figuring out the exact mechanism to be followed. One such ambiguous provision in with respect to sale of Capital goods within five years of its procurement and reversal of […...

Read More

Input Tax Credit: Utilisation, Availment, Apportionment, Ineligible items

In this particular write up, I would like to discuss and to cover all the relevant aspect of ITC under GST to the best of my understanding and per the present legal scenario, ITC is one of the most important and most debatable topic under new tax regime i.e. GOODS and SERVICE TAX, it plays […]...

Read More

Browse All Categories

CA, CS, CMA (4,870)
Company Law (6,355)
Custom Duty (7,855)
DGFT (4,268)
Excise Duty (4,380)
Fema / RBI (4,292)
Finance (4,534)
Income Tax (33,904)
SEBI (3,598)
Service Tax (3,578)

Search Posts by Date

August 2020
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31