input tax credit

ITC under GST on Corporate Social Responsibility

Goods and Services Tax - Some Important Definitions: Goods means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply. [Sec. 2(52) of CGST Act] Services means anything other [&h...

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ITC restrictions by new rules Rule 36(4) & 86(A) of CGST Rules, 2017

Goods and Services Tax - The Rule 36(4) of the CGST Rules has been inserted vide notification No. 49/2019, Central Tax dated 09-10-2019. Since after the introduction this has made a lot of hue and cry among the tax payers . Some problems of the tax payers are really genuine . Although the government has come up with the some […]...

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ITC Restriction under GST to 10%

Goods and Services Tax - Input Tax Credit (ITC) is the credit available towards tax paid on inputs which are used or intended to be used for in the course or furtherance of business. Input Tax Credit is the backbone of GST structure. The success of GST depends upon the smooth flow of ITC. Having too many restrictions on the […]...

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GST on Sale of Fixed Assets

Goods and Services Tax - This article covers following relevant points related to GST Applicability & Treatment of ITC availed on sale of Fixed Assets:- GST Applicability on Sale of Capital Goods purchased in Pre GST era, Treatment on Sale of Capital Goods purchased after implementation of GST, Liability on sale of Capital Assets on which Input Tax Credit (ITC) i...

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Restrictions on availment & utilization of ITC [Rule 36(4) & 86A]

Goods and Services Tax - CBIC on recommendations of 38th GST council meeting has vide Notification No.- 75/2019-CT; Dated 26 Dec 2019 made following restrictions on Availment and Utilization of ITC. Availment of ITC is governed by Sec 16 of GST Act, 2017 and Utilization of ITC by Section 89 of GST Act, 2017. Lets first see if newly inserted […]...

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Fake GST invoices: CGST Surat busted a racket with 19 fake entities

Goods and Services Tax - CGST Surat busted a racket who with 19 fake entities issued fake invoices of Rs. 679cr value and Rs 55 Cr fake ITC and got illegal IGST refund of Rs 39cr by exporting inferior goods at inflated price. One Kingpin arrested. Government of India Ministry of Finance CENTRAL GST & EXCISE COMMISSIONERATE : SURAT CENTRAL […]...

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38th GST Council’s decisions on Law & Procedural changes

Goods and Services Tax - Due date for annual return in FORM GSTR-9 and reconciliation statement in FORM GSTR-9C for FY 2017-18 to be extended to 31.01.2020. Input tax credit to the recipient in respect of invoices or debit notes that are not reflected in his FORM GSTR-2A shall be restricted to 10 per cent of the eligible credit available in respect of invoices or...

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DGGI, Gurugram, busts racket issuing fake GST invoices of more than Rs 136 Crores

Goods and Services Tax - irectorate General of GST Intelligence (DGGI), Gurugram Zonal Unit, Gurugram arrested Sh. Rajiv Gupta on 23.10.2019, partner in M/s RST Batteries, Mundka Delhi and Director of M/s RST Batteries Pvt. Ltd Bahadurgarh, Haryana for orchestrating a racket involving fake invoices valued at more than Rs 136 crores thereby defrauding the Governme...

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Restriction on Input Tax Credit under GST- 5 Issues which needs clarification

Goods and Services Tax - Representation with respect to newly inserted sub-rule (4) of Rule 36 of the Central Goods and Services Tax Rules 2017- and 5 issues on which CBIC needs to issue Immediate clarification - Impact on small suppliers filing GSTR 1 on quarterly basis, Input tax Credit differences arising out of month end movement of goods or services, Input T...

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Extend due date to take Input Tax Credit for Financial Year 2018-2019

Goods and Services Tax - As per the above provision the last date for taking input tax credit for the Financial Year 2018 — 2019 is 20th October 2019 We humbly submit the following practical issues before your good self: Last date for Income Tax Audit under section 44AB is extended till 31st October 2019. It is respectfully submitted over and above the tax pay...

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ITC under GST on inward supply of Motor Vehicle used for Demo

In re Chowgule Industries Private Limited (GST AAR Maharashtra) - In re Chowgule Industries Private Limited (GST AAR Maharashtra) Whether the applicant is entitled to avail Input tax credit charged on inward supply of Motor Vehicle which are used for Demonstration purpose in the course of business of supply of Motor Vehicle as input tax credit on capital goods and...

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No ITC of GST related to setting up of MRO facility for applicant

In re Indag Rubber Limited (GST AAR Rajasthan) - In re Indag Rubber Limited (GST AAR Rajasthan) Q. Whether the applicant is eligible to claim credit of the GST charged by vendor at the time of supply of goods and services to it, which are used for carrying out the following activities for setting up of MRO facility which will be rented out: a. [&h...

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Builder Guilty of not passing benefit of ITC to Flat Buyers

Shri Dharmendra Gaud Vs JMK Holdings Pvt. Ltd. (National Anti-Profiteering Authority) - Shri Dharmendra Gaud Vs JMK Holdings Pvt. Ltd. (National Anti-Profiteering Authority) We have carefully considered all the Reports filed by the DGAP, submissions of the Respondent and other material placed on record and it is revealed that the Respondent is executing his ”Grand IV A” pro...

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ITC eligible on maintaining systems to collect fly ash generated in thermal power plant

The Ramco Cements Ltd. Vs Commissioner of Central Excise (CESTAT Chennai) - Ramco Cements Ltd. Vs Commissioner of Central Excise (CESTAT Chennai) Appellants are with the suppliers of fly ash. It is seen that appellants are installing PDFACS systems in the factories of thermal plants and contract for maintenance providing man power etc. is given to the respective suppliers. ...

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Patiala Courts grants Bail in case of alleged GST evasion via bogus ITC

CGST Vs Sudhir Kumar Aggarwal (Patiala House Court) - CGST Vs Sudhir Kumar Aggarwal (Patiala House Court) Ld counsel for the applicant/accused submitted that the applicant/accused has been falsely implicated. Ld counsel submitted that on various occasions the accused/applicant joined the investigation with the complainant department. Ld counsel submitt...

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Fake GST Invoice: Dept. started Blocking ITC of fake credit availers

F.No. 587/CE/167/Pol/2019/11219-11269 - (13/01/2020) - All the CGST Zones are required to make a list, GSTN-wise of fake credit availers and block their ITC under Rule 86A(1)(a) for the entities located in their jurisdiction. If, however, there are certain entities which are located outside their jurisdiction, they should forward a list of such availers...

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Rule 86A /Central Goods & Services Tax (Ninth Amendment) Rules, 2019

Notification No. 75/2019–Central Tax - (31/12/2019) - Central Goods and Services Tax (Ninth Amendment) Rules, 2019 as notified by Notification No. 75/2019–Central Tax dated: 26th December, 2019. Above rules shall come into force on their date of Publication in Official Gazette. In CGST Rules, 2017: With effect from 1/01/2020: 1). Under Rule 36(4): In...

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Rule 86A Conditions of use of amount available in electronic credit ledger

Notification No. 75/2019–Central Tax [G.S.R. 954(E).] - (26/12/2019) - CBIC amends CGST Rules and restricted the amount of eligible Input Tax credit to 10% from earlier 20% in case of Mismatch. It also inserted new 86A. Conditions of use of amount available in electronic credit ledger. CBIC further added a clause to rule 138E. (Notification No. 75/2019 – Central Tax ...

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CBIC clarifies on 20 Percent Restriction on ITC

Circular No. 123/42/2019– GST - (11/11/2019) - The conditions and eligibility for the ITC that may be availed by the recipient shall continue to be governed as per the provisions of Chapter V of the CGST Act and the rules made thereunder. This being a new provision, the restriction is not imposed through the common portal and it is the responsib...

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Amendment in CGST Rules & Due dates of GSTR 1 / GSTR 3B

Notification no.44-49/2019- Central Tax dated 09 October 2019 - (26/10/2019) - CBIC issues Notifications relating to filing of returns under GST Central Board of Indirect Taxes and Customs has issued Notifications 44–48/2019 Central Tax dated 9 October 2019 relating to filing of returns under Goods and Services Tax (GST). The key changes are as follows: Notification no. ...

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Recent Posts in "input tax credit"

ITC under GST on inward supply of Motor Vehicle used for Demo

In re Chowgule Industries Private Limited (GST AAR Maharashtra)

In re Chowgule Industries Private Limited (GST AAR Maharashtra) Whether the applicant is entitled to avail Input tax credit charged on inward supply of Motor Vehicle which are used for Demonstration purpose in the course of business of supply of Motor Vehicle as input tax credit on capital goods and whether the same can be […]...

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ITC under GST on Corporate Social Responsibility

Some Important Definitions: Goods means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply. [Sec. 2(52) of CGST Act] Services means anything other [&h...

Read More

ITC restrictions by new rules Rule 36(4) & 86(A) of CGST Rules, 2017

The Rule 36(4) of the CGST Rules has been inserted vide notification No. 49/2019, Central Tax dated 09-10-2019. Since after the introduction this has made a lot of hue and cry among the tax payers . Some problems of the tax payers are really genuine . Although the government has come up with the some […]...

Read More

Fake GST Invoice: Dept. started Blocking ITC of fake credit availers

F.No. 587/CE/167/Pol/2019/11219-11269 (13/01/2020)

All the CGST Zones are required to make a list, GSTN-wise of fake credit availers and block their ITC under Rule 86A(1)(a) for the entities located in their jurisdiction. If, however, there are certain entities which are located outside their jurisdiction, they should forward a list of such availers along with GSTN No. to the local office...

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No ITC of GST related to setting up of MRO facility for applicant

In re Indag Rubber Limited (GST AAR Rajasthan)

In re Indag Rubber Limited (GST AAR Rajasthan) Q. Whether the applicant is eligible to claim credit of the GST charged by vendor at the time of supply of goods and services to it, which are used for carrying out the following activities for setting up of MRO facility which will be rented out: a. […]...

Read More

ITC Restriction under GST to 10%

Input Tax Credit (ITC) is the credit available towards tax paid on inputs which are used or intended to be used for in the course or furtherance of business. Input Tax Credit is the backbone of GST structure. The success of GST depends upon the smooth flow of ITC. Having too many restrictions on the […]...

Read More

GST on Sale of Fixed Assets

This article covers following relevant points related to GST Applicability & Treatment of ITC availed on sale of Fixed Assets:- GST Applicability on Sale of Capital Goods purchased in Pre GST era, Treatment on Sale of Capital Goods purchased after implementation of GST, Liability on sale of Capital Assets on which Input Tax Credit (ITC) i...

Read More

Fake GST invoices: CGST Surat busted a racket with 19 fake entities

CGST Surat busted a racket who with 19 fake entities issued fake invoices of Rs. 679cr value and Rs 55 Cr fake ITC and got illegal IGST refund of Rs 39cr by exporting inferior goods at inflated price. One Kingpin arrested. Government of India Ministry of Finance CENTRAL GST & EXCISE COMMISSIONERATE : SURAT CENTRAL […]...

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Builder Guilty of not passing benefit of ITC to Flat Buyers

Shri Dharmendra Gaud Vs JMK Holdings Pvt. Ltd. (National Anti-Profiteering Authority)

Shri Dharmendra Gaud Vs JMK Holdings Pvt. Ltd. (National Anti-Profiteering Authority) We have carefully considered all the Reports filed by the DGAP, submissions of the Respondent and other material placed on record and it is revealed that the Respondent is executing his ”Grand IV A” project under the Affordable Housing Scheme...

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Restrictions on availment & utilization of ITC [Rule 36(4) & 86A]

CBIC on recommendations of 38th GST council meeting has vide Notification No.- 75/2019-CT; Dated 26 Dec 2019 made following restrictions on Availment and Utilization of ITC. Availment of ITC is governed by Sec 16 of GST Act, 2017 and Utilization of ITC by Section 89 of GST Act, 2017. Lets first see if newly inserted […]...

Read More

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