input tax credit

GST: Interest rate on reversal of credit 18% or 24%

Income Tax - Interest provisions in GST law are covered under section 50(1) and section 50(3) of Central Goods and Services Tax Act, 2017. Section 50(3) specifies that interest rate should not exceed 24% p.a. and intends to exclusively cover cases of contravention as per section 42 (10) and section 43 (10). Whereas section 50 (1) is a […]...

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Input Tax Credit on Demo Cars Under GST

Income Tax - According to section 17(5) of CGST Act, 2017,  input tax credit will not be available in respect of motor vehicles and other conveyances,  except when such motor vehicles or other conveyances are supplied further, or used for transportation of passengers or giving training on driving, flying, navigating such vehicles or conveyances or a...

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Input Tax Credit – ITC

Income Tax - At every stage of the supply chain, the buyer of the goods or service gets credit for the input tax paid, and he can use it to offset the GST payable on the output which is required to be paid to the Centre and State governments. To understand this Input Tax Credit concept better, let’s take the help of an illustration of a company call...

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GSTR 9- One Page Guide on Treatment of ITC, RCM & Outward Liability

Income Tax - The last date for filing of Annual return in FORM GSTR-9 for the FY 2017-18 is 31st August 2019 and many professionals facing lot of Confusion regarding Presentation purpose in different tables of GSTR 9 specially in case of transactions shown in GSTR 3B of 2018-19 which are pertaining to FY 2017-18. So  What will […]...

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Mere Reflection of ITC in electronic credit ledger not amounts to availment or utilization of ITC: HC

Income Tax - Reflection of input tax credit in electronic credit ledger does not amount to availment or utilization of credit- Patna HC Issue under consideration As per section 73 of CGST Act, 2017 if it is found that an assessee has wrongly availed or utilized input tax credit then the proper officer shall issue a show cause […]...

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DGGI (HQs) arrests two in cases of fraudulent IGST refund claims

Income Tax - Two Arrests have been made by the Directorate General of GST Intelligence (HQs) in cases of fraudulent IGST refund claims here, today. As per the statement of the DGGI (HQs), the action was taken on receipt of an input from Allahabad Bank, Paschim Vihar, New Delhi that suspicious transactions were noticed in the accounts of […]...

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Request to Extend time limit for claim of ITC for FY 2017-2018

Income Tax - The GST Council has extended the date of filing the GSTR-9 upto 31st Aug, 2019 from 31st July, 2019 but on account of difficulties being faced by taxpayers in furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C, the due date for furnishing these returns/reconciliation statements to be ...

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Fraudulent GST ITC of Rs 5.06 Crore- One arrest in Gurugram

Income Tax - The Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit arrests one person for taking ITC fraudulently to the tune of more than Rs 5.06 Crore The Directorate General of GST Intelligence (DGGI),Gurugram Zonal Unit, Gurugram has arrested one person namely Shri Ajit Jindal, Proprietor of M/s. Shree Balaji Enterprises, A-43, S...

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Fraudulent GST ITC of more than ₹ 16 Crore- DGGI arrests one person

Income Tax - The Directorate General of GST Intelligence Hqrs. arrests one person in connection with the taking by two firms ITC fraudulently to the tune of more than Rs.16 Crore....

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Rajasthan HC admit writ challenging Rule 89(5) of CGST Rules, 2017

Income Tax - By way of this Writ Petition the petitioner has challenged the provision of Rule 89(5) of the CGST Rules, 2017 by way of which computation mechanism of the Input Tax Credit to be refunded in case of inverted duty structure has been modified to exclude Input Services from the definition of Net ITC with retrospective effect thereby denying ...

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CGST Act not provides for Lapse of ITC for inverted rate structure: HC

Shabnam Petrofils Pvt. Ltd. Vs Union of India (Gujarat High Court) - The CGST Act itself provides for the lapsing of the ITC at Sections 17(4) and 18(4) respectively of the CGST Thus, where the legislature wanted the ITC to lapse, it has been expressly provided for in the Act itself. No such express provision has been made in Section 54(3) of the CGST Act....

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AAAR ruling on Rates of GST on various services provided by club

In re Bengal Rowing Club (GST AAAR West Bangal) - In re Bengal Rowing Club (GST AAAR West Bangal) AAAR ruling on Rate of GST on Supply of food from restaurant, Other services provided in restaurant like booking of personal dining area, Supply of food at events organised in the club premises like get-togethers and parties hosted by members of the Cl...

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SC judgment on ITC benefit on Sales made outside the state

M/s. TVS Motor Company Ltd. Vs. State of Tamil Nadu and Others (Supreme Court of India) - M/s. TVS Motor Company Ltd. Vs. State of Tamil Nadu and Others (Supreme Court of India) A reading of Section 8(1) of the CST Act would show that classification is contained in the Central Act itself which treats sale to a registered dealer outside the State in one category and sale to an unregistere...

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HC grants Anticipatory bail against arrest under GST for alleged bogus billing

Mr. Mahendra Kumar Singhi Vs Commissioner of Commercial Taxes (Karnataka High Court) - Mr. Mahendra Kumar Singhi Vs Commissioner of Commercial Taxes (Karnataka High Court) Though several contentions have been raised with reference to initiation of the action under the GST Act and CST Act, since the scope of these petitions is limited only to consider the bail applications, the other p...

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Fake GST invoices: Circumstances under which bail can be granted

B. Banu Bee Vs State of Karnataka (Karnataka High Court) - B. Banu Bee Vs State of Karnataka (Karnataka High Court) This Court in the case of Sri. Avainash Aradhya Vs. the Commissioner of Central Tax in Criminal Petititon No.497/2019 c/w Criminal Petition No.498/2019 by order dated 18.2.2019 has elaborately discussed the provisions of law and other aspects ...

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Clarification in respect of goods taken out of India for exhibition or on consignment basis for export promotion

NA - (19/07/2019) - Several goods are taken out of India on consignment basis for exhibitions or other export promotion events. These goods are sold only when approved by the prospective customers abroad. The unsold goods are then brought back to India. This is a widespread practice in various sectors, including the ge...

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GST on Real Estate- Exercise of Option- Date extended to 20.05.2019 (Read Notification)

Notification No. 10/2019-Central Tax (Rate) [G.S.R. 354(E).] - (10/05/2019) - The date for exercising the option for residential real estate project to either stay at old GST rate (8% or 12% with ITC) or to avail new GST rate (1% or 5% without ITC) is being extended to 20.05.2019 from 10.05.2019. Government of India Ministry of Finance (Department of Revenue) Notification No....

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All about Amendments to Maharashtra Value Added Tax Act, 2002

Trade Circular No. 16T of 2019 - (06/05/2019) - A dealer can also apply to the assessing officer in case claims against declarations or certificates were disallowed in the assessment order due to non-production of such declarations or certificates and if such declarations or certificates have now been received. [sec. 24(2)] Rectification applicat...

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CBIC clarifies manner of utilization of GST input tax credit

Circular No. 98/17/2019-GST - (23/04/2019) - CBIC clarifies the manner of utilization of input tax credit post insertion of the rule 88A of the CGST Rules vide Circular No. 98/17/2019-GST dated 23rd April 2019. Clarification in respect of utilization of ITC under GST Clarification on Section 49A and Section 49B inserted w.e.f 1st February, 201...

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CBIC amends new GST Composition Scheme rules related to ITC

Notification No. 9/2019-Central Tax (Rate) - (29/03/2019) - Notification No. 9/2019-Central Tax (Rate)- Seeks to amend notification No. 02/2019- Central Tax (Rate) so as to provide for application of Composition rules to persons opting to pay tax under notification no. 2/2019- Central Tax (Rate). Government of India Ministry of Finance (Department of Revenue...

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Recent Posts in "input tax credit"

DGGI (HQs) arrests two in cases of fraudulent IGST refund claims

Two Arrests have been made by the Directorate General of GST Intelligence (HQs) in cases of fraudulent IGST refund claims here, today. As per the statement of the DGGI (HQs), the action was taken on receipt of an input from Allahabad Bank, Paschim Vihar, New Delhi that suspicious transactions were noticed in the accounts of […]...

Read More

GST: Interest rate on reversal of credit 18% or 24%

Interest provisions in GST law are covered under section 50(1) and section 50(3) of Central Goods and Services Tax Act, 2017. Section 50(3) specifies that interest rate should not exceed 24% p.a. and intends to exclusively cover cases of contravention as per section 42 (10) and section 43 (10). Whereas section 50 (1) is a […]...

Read More

Request to Extend time limit for claim of ITC for FY 2017-2018

The GST Council has extended the date of filing the GSTR-9 upto 31st Aug, 2019 from 31st July, 2019 but on account of difficulties being faced by taxpayers in furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C, the due date for furnishing these returns/reconciliation statements to be ...

Read More

Input Tax Credit on Demo Cars Under GST

According to section 17(5) of CGST Act, 2017,  input tax credit will not be available in respect of motor vehicles and other conveyances,  except when such motor vehicles or other conveyances are supplied further, or used for transportation of passengers or giving training on driving, flying, navigating such vehicles or conveyances or a...

Read More

Input Tax Credit – ITC

At every stage of the supply chain, the buyer of the goods or service gets credit for the input tax paid, and he can use it to offset the GST payable on the output which is required to be paid to the Centre and State governments. To understand this Input Tax Credit concept better, let’s take the help of an illustration of a company call...

Read More

GSTR 9- One Page Guide on Treatment of ITC, RCM & Outward Liability

The last date for filing of Annual return in FORM GSTR-9 for the FY 2017-18 is 31st August 2019 and many professionals facing lot of Confusion regarding Presentation purpose in different tables of GSTR 9 specially in case of transactions shown in GSTR 3B of 2018-19 which are pertaining to FY 2017-18. So  What will […]...

Read More

GST Commissionerate detects fraudulent ITC of about Rs 25 crores

The accused and their associates were found to be operating 19 fake firms created to facilitate fraudulent Input Tax Credit (ITC), thus defrauding the Exchequer. Prima facie fraudulent ITC of about Rs 25 crores has been detected to have been passed on using invoices involving an amount of Rs 137 crores....

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Mere Reflection of ITC in electronic credit ledger not amounts to availment or utilization of ITC: HC

Reflection of input tax credit in electronic credit ledger does not amount to availment or utilization of credit- Patna HC Issue under consideration As per section 73 of CGST Act, 2017 if it is found that an assessee has wrongly availed or utilized input tax credit then the proper officer shall issue a show cause […]...

Read More

CGST Act not provides for Lapse of ITC for inverted rate structure: HC

Shabnam Petrofils Pvt. Ltd. Vs Union of India (Gujarat High Court)

The CGST Act itself provides for the lapsing of the ITC at Sections 17(4) and 18(4) respectively of the CGST Thus, where the legislature wanted the ITC to lapse, it has been expressly provided for in the Act itself. No such express provision has been made in Section 54(3) of the CGST Act....

Read More

Insight to new rules of Input Tax credit under GST

India could face a tax landmine with authorities beginning to question input tax credit claimed by companies in lieu of Goods and Services Tax (GST) paid by their vendors. The authorities have already started sending notices to businesses, confirming fears that scrutiny will increase in the new financial year as the government looks to pl...

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