input tax credit

Verbatim wise meaning & credits which are not blocked u/s 17(5)(d) of IGST Act

Goods and Services Tax - Input Tax Credit (ITC) is available on all type of purchases (goods or capital goods or services) if they are used for business (Sub-Section 1 of Section 16). But there are exceptions to this rule. In case of certain purchases ITC is not available even if they are used for business. Such types of purchases […]...

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Can buyer claim ITC if supplier has not paid his tax under GST?

Goods and Services Tax - Can buyer claim ITC if supplier has not paid his tax ??? ⇓ As per Section 16(2)(c) of CGST Act, the recipient of goods and services can avail ITC only if supplier has deposited the tax with government either in cash or through utilisation of input tax credit. ⇓  After reading this section we can […]...

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How is Input Tax Credit (ITC) utilized??

Goods and Services Tax - Input Tax Credit (hereinafter referred as ITC) is credit available to a person registered under GST on payment of Input Tax. This amount is available in his Electronic Credit Ledger which he can adjust against his output tax liability. Please note that in this article we are not concerned about Electronic Cash Ledger In this […]...

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SEZ unit/developers ineligible to claim refund of ITC involved in supplies received from non-SEZ suppliers

Goods and Services Tax - The Hon’ble Appellate Authority, GST, Andhra Pradesh, in Re: Vaachi International Pvt. Ltd.  [Order No. 4990 of 2020 dated February 10, 2020] held that the SEZ unit/developers shall not claim any refund against input tax credit (ITC) involved in supplies received by them from non-SEZ suppliers and GST Law facilitates eligibility for re...

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Reversal of ITC after legal availment under GST

Goods and Services Tax - In the forth coming article we will discuss the issue that the right to avail the input tax credit is to be seen as on the date of the credit availment and not otherwise .The main intent of the this article is that whether ITC can be called upon to pay back by revenue officers […]...

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GST Council Law Committee to meet & discuss fake invoices on Nov 18

Goods and Services Tax - An urgent meeting of the Law Committee of the Goods and Service Tax (GST) Council has been convened tomorrow in New Delhi to discuss in detail the issue of fake invoices to claim input tax credit under the indirect tax regime. The meet will deliberate on ways of further tightening of the GST registration process […]...

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53 Associations submits representation on issues in GST

Goods and Services Tax - 53 GST and Trade Associations, under the banner of the ‘All India Joint Representation Committee for GST’, have come together, to submit a joint representation to the Union Finance Minister, Smt.Nirmala Sitharaman, on various relaxations which are required in GST to ease the suffering of businesses as well as meet the emergent...

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Extend due date of ITC Claim & GSTR 9, GSTR 9A, GSTR 9C

Goods and Services Tax - Direct Taxes Professionals’ Association requested Hon’ble Finance Minister to allow filing of GSTR 9, 9A and 9C for the F.Y. 2018-19 at least till 31st December 2020 and to waive the late fees and penalty till then, extend time limit to claim credit on the invoices pertaining to FY 2019-20 as envisaged in Section 16(4) […]...

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Extend all due dates under GST- Solve Issues in GST

Goods and Services Tax - Association of Tax Practitioners, Ernakulam has made a representation to Principal Commissioner (GST) and highlighted Difficulty faced by GST Tax Practitioners, in implementing directions contained in Circular No.142/12/2020-GST dated 09.10.2020, Failure of GST Portal Services and may other issues. They also requested to extend all due da...

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Request to extend time to file GSTR-3B for September, 2020

Goods and Services Tax - Request for extension of time to file GST return in Form GSTR-3B for the month of September, 2020 by registered tax payers having turnover of more than Rs. 5 Crores which would include time to claim ITC of 2019-20....

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No Bail to person accused of floating bogus firms in alleged GST Evasion case

Director General of GST Intelligence Vs Vikas Jain (Rohtak District Court) - Director General of GST Intelligence Vs Vikas Jain (Rohtak District Court)  The allegations against the present applicant/accused are that he and co-accused Satender are the persons responsible for floating bogus firms in the name of various persons and he was involved in the issuing of invoice wit...

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Anticipatory Bail to management of ‘Milk Food’ in alleged Fake ITC availment case

Naval Kumar & 3 Others Vs CGST, Delhi East (Patiala House Court) - Naval Kumar Vs CGST (Patiala House Court) In this case , admittedly the total amount as liability of the of the applicants is yet to be adjudicated and assessed. Liability which has been raised by the department is the tentative where show cause notice is yet to be issued and adjudication is still d...

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Rajasthan HC grants bail to person accused of wrongfully availing ITC under GST

Subhash Chandra Tyagi Vs Directorate General Of Goods And Service Tax (Rajasthan High Court) - Subhash Chandra Tyagi Vs Directorate General Of Goods And Service Tax (Rajasthan High Court) The present bail application has been filed under Section 439 Cr.P.C. The petitioner has been arrested in connection with Criminal Complaint No. DGGI /320/ Gr.I/ INV/ GST/ SCT/ 15/2019 registered at Chief Me...

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HC Grant Petitioner Opportunity to file Representation Regarding Refund of Excess Payment of Tax

Sun Pharma Laboratories Limited Vs Union of India (Sikkim High Court) - The present petition is filed to seek refund of excess payment of tax, if payment was made through ITC. HC grant the petitioner an opportunity to explain its stand on GSTR-1 and GSTR-3B as also the Circulars....

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Logix Infrastructure guilty of not passing ITC benefit to Homebuyers: NAA

Sh. Rajender Meena Vs Logix Infrastructure Pvt. Ltd (National Anti-Profiteering Authority) - Sh. Rajender Meena Vs Logix Infrastructure Pvt. Ltd (National Anti-Profiteering Authority) We take note of the fact that Respondent vide his submissions dated 05.06.2020 has accepted his liability of passing on the benefit of additional ITC as per the report of the DGAP and has also submitted that h...

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DGGI Rohtak arrests one more in Hisar for issuing fake invoices of ITC

Release ID: 1675359 - (24/11/2020) - In pursuance of ongoing investigation of fraudulent passing of Input Tax Credit (ITC)wherein one person namely Sh. Satender Kumar Singla of Hisar was arrested on 12.11.2020,the Directorate General of GST Intelligence (DGGI), Regional Unit, Rohtak falling under Gurugram Zonal Unit has arrested one mo...

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One arrested for availing ITC of Rs. 3.51 Crore on fake invoices

Release ID: 1674495 - (20/11/2020) - On the basis of specific information regarding availment of ITC on fake invoices, searches were conducted on 19.11.2020 by the officers of DGGI, Nagpur Zonal Unit at the premises of a Nagpur based trading firm dealing in Paint, Cement and Iron & Steel products....

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DGGI arrests Nashik builder for availing fraudulent ITC under GST

Release ID: 1673994 - (19/11/2020) - The officials of DGGI, Nashik Regional Unit of DGGI, Nagpur Zonal Unit arrested a prominent builder of Nashik in an ongoing investigation regarding availment of fraudulent Input Tax Credit on fake invoices....

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DGGI busted Inter State Fake Invoice racket

Release ID: 1673705 - (18/11/2020) - Inter State Fake Invoice racket with fake transactions valued at over Rs. 131 Crore value busted by DGGI involving fraudulent Input Tax credit of Rs. 26.09 Crore...

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One held for fraudulently passing ITC of Rs 13.08 crore

Release ID: 1672747 - (13/11/2020) - DGGI, Rohtak Regional Unit, has arrested one person namely, Sh. Satinder Kumar Singla, of Hisar who was found involved in issuing fake invoices from various firms without actual movement of goods having taxable value of Rs. 75 crore (approx.) and fraudulently passing ITC amounting to Rs. 13.08 crore...

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Recent Posts in "input tax credit"

Verbatim wise meaning & credits which are not blocked u/s 17(5)(d) of IGST Act

Input Tax Credit (ITC) is available on all type of purchases (goods or capital goods or services) if they are used for business (Sub-Section 1 of Section 16). But there are exceptions to this rule. In case of certain purchases ITC is not available even if they are used for business. Such types of purchases […]...

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No Bail to person accused of floating bogus firms in alleged GST Evasion case

Director General of GST Intelligence Vs Vikas Jain (Rohtak District Court)

Director General of GST Intelligence Vs Vikas Jain (Rohtak District Court)  The allegations against the present applicant/accused are that he and co-accused Satender are the persons responsible for floating bogus firms in the name of various persons and he was involved in the issuing of invoice without the actual movement of the goods. T...

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Anticipatory Bail to management of ‘Milk Food’ in alleged Fake ITC availment case

Naval Kumar & 3 Others Vs CGST, Delhi East (Patiala House Court)

Naval Kumar Vs CGST (Patiala House Court) In this case , admittedly the total amount as liability of the of the applicants is yet to be adjudicated and assessed. Liability which has been raised by the department is the tentative where show cause notice is yet to be issued and adjudication is still due. Such […]...

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Can buyer claim ITC if supplier has not paid his tax under GST?

Can buyer claim ITC if supplier has not paid his tax ??? ⇓ As per Section 16(2)(c) of CGST Act, the recipient of goods and services can avail ITC only if supplier has deposited the tax with government either in cash or through utilisation of input tax credit. ⇓  After reading this section we can […]...

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Rajasthan HC grants bail to person accused of wrongfully availing ITC under GST

Subhash Chandra Tyagi Vs Directorate General Of Goods And Service Tax (Rajasthan High Court)

Subhash Chandra Tyagi Vs Directorate General Of Goods And Service Tax (Rajasthan High Court) The present bail application has been filed under Section 439 Cr.P.C. The petitioner has been arrested in connection with Criminal Complaint No. DGGI /320/ Gr.I/ INV/ GST/ SCT/ 15/2019 registered at Chief Metropolitan Magistrate (Economic Offences...

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HC Grant Petitioner Opportunity to file Representation Regarding Refund of Excess Payment of Tax

Sun Pharma Laboratories Limited Vs Union of India (Sikkim High Court)

The present petition is filed to seek refund of excess payment of tax, if payment was made through ITC. HC grant the petitioner an opportunity to explain its stand on GSTR-1 and GSTR-3B as also the Circulars....

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How is Input Tax Credit (ITC) utilized??

Input Tax Credit (hereinafter referred as ITC) is credit available to a person registered under GST on payment of Input Tax. This amount is available in his Electronic Credit Ledger which he can adjust against his output tax liability. Please note that in this article we are not concerned about Electronic Cash Ledger In this […]...

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SEZ unit/developers ineligible to claim refund of ITC involved in supplies received from non-SEZ suppliers

The Hon’ble Appellate Authority, GST, Andhra Pradesh, in Re: Vaachi International Pvt. Ltd.  [Order No. 4990 of 2020 dated February 10, 2020] held that the SEZ unit/developers shall not claim any refund against input tax credit (ITC) involved in supplies received by them from non-SEZ suppliers and GST Law facilitates eligibility for re...

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Reversal of ITC after legal availment under GST

In the forth coming article we will discuss the issue that the right to avail the input tax credit is to be seen as on the date of the credit availment and not otherwise .The main intent of the this article is that whether ITC can be called upon to pay back by revenue officers […]...

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Logix Infrastructure guilty of not passing ITC benefit to Homebuyers: NAA

Sh. Rajender Meena Vs Logix Infrastructure Pvt. Ltd (National Anti-Profiteering Authority)

Sh. Rajender Meena Vs Logix Infrastructure Pvt. Ltd (National Anti-Profiteering Authority) We take note of the fact that Respondent vide his submissions dated 05.06.2020 has accepted his liability of passing on the benefit of additional ITC as per the report of the DGAP and has also submitted that he had passed on the benefit of […...

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DGGI Rohtak arrests one more in Hisar for issuing fake invoices of ITC

Release ID: 1675359 (24/11/2020)

In pursuance of ongoing investigation of fraudulent passing of Input Tax Credit (ITC)wherein one person namely Sh. Satender Kumar Singla of Hisar was arrested on 12.11.2020,the Directorate General of GST Intelligence (DGGI), Regional Unit, Rohtak falling under Gurugram Zonal Unit has arrested one more person namely, Sh. Vikas Jain, of Jin...

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Letter to FM on issues in GSTR 2A & GST 2B – ITC availment

Respected Madam, My self- Rajesh Deshpande from Pune Maharashtra working as a Manager-Finance in Pharmaceutical Company name of SAVA HEALTHCARE LTD. We would like to bring your kind attention towards current system of ITC availement and issues creating regarding at the time of reconciliation. As you are fully aware that, GST2B is inserted...

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Understanding Fake Input Tax Credit & How to Unplug Them

It’s almost 34 months since GST has been introduced in India and one of the major Shortfalls of the GST is creation of fake invoices to wrongly avail fake credit out of thin air thereby creating revenue loss to the Government which is not acceptable, to make you understand this concept let me explain the […]...

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One arrested for availing ITC of Rs. 3.51 Crore on fake invoices

Release ID: 1674495 (20/11/2020)

On the basis of specific information regarding availment of ITC on fake invoices, searches were conducted on 19.11.2020 by the officers of DGGI, Nagpur Zonal Unit at the premises of a Nagpur based trading firm dealing in Paint, Cement and Iron & Steel products....

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ITC disallowance to buyer for seller’s default to pay taxes ‘unsustainable’

Input Tax Credit (ITC) restriction in the hands of buyer, on the ground of tax collected but remaining unpaid to the Government by the seller cannot be sustained and requires re-consideration....

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DGGI arrests Nashik builder for availing fraudulent ITC under GST

Release ID: 1673994 (19/11/2020)

The officials of DGGI, Nashik Regional Unit of DGGI, Nagpur Zonal Unit arrested a prominent builder of Nashik in an ongoing investigation regarding availment of fraudulent Input Tax Credit on fake invoices....

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DGGI busted Inter State Fake Invoice racket

Release ID: 1673705 (18/11/2020)

Inter State Fake Invoice racket with fake transactions valued at over Rs. 131 Crore value busted by DGGI involving fraudulent Input Tax credit of Rs. 26.09 Crore...

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GST Council Law Committee to meet & discuss fake invoices on Nov 18

An urgent meeting of the Law Committee of the Goods and Service Tax (GST) Council has been convened tomorrow in New Delhi to discuss in detail the issue of fake invoices to claim input tax credit under the indirect tax regime. The meet will deliberate on ways of further tightening of the GST registration process […]...

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Decoding Section 16(4) – ITC under GST– From Naked Perspective

In the recent times, the CGST Department has been aggressively issuing notices and advisory related to section 16(4) for late filing of GSTR 3B upto the March month of FY 2018-19, after due date of GSTR 3B of September Month. The Notice and advisory sent by the department is related to Reversing the ITC claimed […]...

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One held for fraudulently passing ITC of Rs 13.08 crore

Release ID: 1672747 (13/11/2020)

DGGI, Rohtak Regional Unit, has arrested one person namely, Sh. Satinder Kumar Singla, of Hisar who was found involved in issuing fake invoices from various firms without actual movement of goods having taxable value of Rs. 75 crore (approx.) and fraudulently passing ITC amounting to Rs. 13.08 crore....

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DGGI, Mumbai, arrests 2 persons in fictitious ITC case

Release ID: 1672299 (12/11/2020)

Mumbai Zonal Unit of the Directorate General of GST Intelligence, CBIC has arrested Mr. Sunil Ratnakar Gutte, Director of M/s. Sunil Hitech Engineering Ltd., on charges of having fraudulently availed, utilized, as well as passed on fictitious Input Tax Credit, today, 12th November 2020....

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Firm busted for availing benefit from bogus invoices of around Rs 685 crore

Release ID: 1672143 (12/11/2020)

On the basis of specific intelligence as well as further data mining/analysis on GSTN and E way bill portals, the officers of CGST Delhi South Commissionerate, have busted a syndicate of firms involved in availing invoices/E-way bills issued on the GSTIN of fake/dummy firms and getting Refund of IGST on the strength of such fake Invoices....

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DGGI Mumbai arrests 4 for passing on & availing fictitious ITC

Release ID: 1672040 (11/11/2020)

Four persons have been arrested by the Mumbai Zonal Unit of Directorate General of GST Intelligence (DGGI-MZU), under CBIC, on Tuesday (November 10, 2020)....

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GST Form-2B – Auto-drafted ITC

CBIC has inserted new FORM-2B – Auto-drafted ITC Statement- under  60(7) vide Notification No. 82/2020–Central Tax dated 10th November, 2020. Please find bellow the format of New Form-2B Auto-drafted ITC Statement, Advisory and Instruction for filing of the same. 1. Terms Used :- a. ITC – Input tax credit b. B2B – Business to...

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Due date for filing ITC-04 for July 2020 to September 2020 extended

Notification No. 87/2020–Central Tax [S.O. 703(E)] (10/11/2020)

Due date for filing ITC-04 (Job worker return), in respect of goods dispatched to a job worker or received from a job worker, during the period from July, 2020 to September, 2020 extended to 30th November 2020. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) Notification No. 87/2020–Central Tax ...

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CBIC notifies date of applicability of amendment in Section 39- CGST Act 2017

Notification No. 81/2020–Central Tax/S.O. 4043(E) (10/11/2020)

Central Government hereby appoints the 10th day of November, 2020, as the date on which the new provisions of section 39 of the Central Goods and Services Tax Act, 2017  shall come into force, which were introduced by Finance (No. 2) Act, 2019 (23 of 2019). Section 39 deals with provisions related to Furnishing of […]...

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HC Grant Regular Bail to Petitioner accused of Fraudulently availing ITC

Ganga Ram Vs State of Punjab and another (Punjab & Haryana High Court)

The present petition is filed for seeking bail to the petitioner accused of fraudulently availing ITC without any invoice or bill. The trial will take time to conclude, especially due to prevailing situation of Covid-19. Thus, the petition is allowed and the petitioner is ordered to be released on regular bail. ...

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No section 50 interest on GST payment made through input tax credit

Maansarovar Motors Private Ltd. Vs Assistant Commissioner (Madras High Court)

Maansarovar Motors Private Ltd. Vs Assistant Commissioner (Madras High Court) Conclusion: Every person who is liable to pay tax in terms of the Act shall remit the tax either in cash or by way of adjustment of credit available in the Input Tax Credit (ITC) register. Where delay is made in remitting the tax, no […]...

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ITC, Interest & Rule 36(4) Dangerous Provision of GST that Every Professional Should be aware

HERE I WANT YOU UNDERSTAND 36(4) AND ITS HIDDEN AGENDA. I Request everyone to read BELOW EXAMPLE. On 36(4). THE danger of 36(4)… Interest cost disguised in it… Do read and discuss with your colleagues. Share with your professional friends… read below example of XYZ LTD. XYZ LTD HAVE FOLLOWING PURCHASES IN JANUARY, FEBRUA...

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Madras HC permits re-submission of Form GSTR-3B

Sun Dye Chem Vs The Assistant Commissioner (ST) (Madras High Court)

Sun Dye Chem Vs Assistant Commissioner (ST) (Madras High Court) A registered person who files a return under Section 39(1) involving intra-State outward supply is to indicate the collection of taxes customer-wise in monthly return in Form GSTR-1 and the details of tax payment therein are auto populated in Form GSTR -2-A of the buyers. [&h...

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You will receive notice from GST department if there is mismatch in your returns

You know that 3 years have passed since the enactment of GST laws, but many mistakes are still being committed by GST tax payers while filing GST returns particularly GSTR-3B and GSTR-1 due to negligence, oversight or due to lack of conceptual clarity on various provisions of the GST Acts and Rules. This problem of making […]...

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Input Tax Credit under Section 16 (2) – Etymology of Double/Triple Jeopardy (??)

Informally, it is called the ‘Double Whammy’ or the ‘Triple Whammy’ – I write this article to put forth an instance of Double/Triple Jeopardy in connection with Input Tax Credit under Section 16(2). The term ‘jeopardy’ is defined as a “hazard, danger or peril.” With respect to criminal jeopardy it connote...

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Eligibility of ITC under RCM Even after expiry of Time Limit

Eligibility of Input Tax Credit (ITC) under RCM on supply received from unregistered persons Even after Expiry of Time Limit Specified in Section 16(4):- There is a lot of confusion around sec 16(4) and there are many taxpayers who are suffering from lapses of ITC due provision of Sec 16(4) especially in the case of […]...

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CGST officials bust racket for generating fraudulent ITC via fake billing

Release ID: 1668567 (29/10/2020)

Based upon specific intelligence, the officers of the Anti Evasion branch of Central Goods and Service Tax (CGST),Commissionerate, Delhi (East) have busted a major racket for generation of huge inadmissible input tax credit (ITC) through fake billing of Rs 1,278 crore (approx)....

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DGGI Gurugram arrests man for forging ITC of around Rs 392 crore

Release ID: 1668645 (29/10/2020)

The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has arrested one Kabir Kumar, resident of New Delhi on charges of creating and operating fictitious firms on forged documents and passing fake input tax credit by way of issuance of invoices without any actual receipt or supply of goods or services....

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Discussion on ITC Of Diwali Gifts under GST

Festival season has arrived and Diwali is one of the biggest festivals in India. These are the times when people give gifts, sweets to their friends, relatives, employees, family, and clients. Our question is that Whether the input tax credit would be available for the purchase of Diwali gifts? Here we discuss the 2 scenarios […]...

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FAQs on FORM GST ITC- 01 Offline Tool

Q.1 What is GST ITC-01? Ans. Registered person who is entitled to claim credit of input tax under section 18 (1) of CGST Act 2017, can claim such credit by filing a declaration in Form ‘GST ITC-01’. The credit may be availed for inputs held in stock, Inputs contained in semi-finished or finished goods held in […]...

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FAQs GST ITC-04 Offline Utility

About Form GST ITC-04 Offline Utility Q. 1 What is Form GST ITC-04 Offline Utility? Ans. Form GST ITC-04 Offline utility is an Excel-based tool to help taxpayers to prepare their Form GST ITC-04 declaration offline. Taxpayers may use the offline utility to furnish details of goods/capital goods sent to job worker and received back [&helli...

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GSTR 3B and GST Annual Return

It has been more than 3 years since the implementation of GST, Goods and Services Tax and there are still a lot to fix. Probably with ever-changing provisions, GST is the most dynamic Act. This article is going to be short as it focuses only one aspect which is: claiming of ITC in GSTR 3B. […]...

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Refund of ITC accumulated due to Inverted Tax Structure (RFD-01A)

FAQs on Refund of ITC accumulated due to Inverted Tax Structure (RFD-01A) Q.1 What is Inverted Tax Structure in the GST regime? Ans: The term ‘Inverted Tax Structure’ refers to a situation where the rate of tax on inputs is more than the rate of tax on output supplies. As a result, the higher tax […]...

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ITC Refund on Account of Exports Without Payment of Tax

How can I submit the application for refund of ITC on account of Exports without payment of Tax on the GST Portal? To submit the application for refund of ITC on account of Exports without payment of Tax on the GST Portal, perform the following steps: 1. Access the https://www.gst.gov.in/ URL. The GST Home page is displayed....

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Refund in GST regime under Section 54 read with Rule 89 & 96

Refund in GST regime For a tax payer refunds are always pleasant and it is been looked upon as a blessing in spite of the fact what it really is the reimbursement of tax payers own money by the government. This factor brings it near to recovery of money loaned to a friend that you thought […]...

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Dussehera gift of date extension, but what about Diwali gift of ITC?

Arjun (Fictional Character): Krishna, tax departments have gifted taxpayers with their Dussehera gift, in form of date extension, what are the new due dates for GSTR-9 & 9C? Krishna(Fictional Character): Arjuna, around 53 GST and trade associations had submitted representations as well as filed a writ petition for extension of due dat...

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53 Associations submits representation on issues in GST

53 GST and Trade Associations, under the banner of the ‘All India Joint Representation Committee for GST’, have come together, to submit a joint representation to the Union Finance Minister, Smt.Nirmala Sitharaman, on various relaxations which are required in GST to ease the suffering of businesses as well as meet the emergent...

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Extend due date of ITC Claim & GSTR 9, GSTR 9A, GSTR 9C

Direct Taxes Professionals’ Association requested Hon’ble Finance Minister to allow filing of GSTR 9, 9A and 9C for the F.Y. 2018-19 at least till 31st December 2020 and to waive the late fees and penalty till then, extend time limit to claim credit on the invoices pertaining to FY 2019-20 as envisaged in Section 16(4) […]...

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Bail Granted to Person Accused of Fraudulently availing ITC

DGGI Vs Sudhir Gulati (Patiala House Court, New Delhi)

The present petition is file to seek bail to the person accused of fraudulently availing Input Tax Credit (ITC) and allegedly involved in the tax evasion? The Court has admitted bail on furnishing bail bond in the sum of Rs.1 Lakh with one surety of like amount subject to the conditions....

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Student arrested in alleged Fake Input Tax Credit case

F. No. GEXCOWAE/INV/GST/575/2020 (21/10/2020)

The kingpin, who hails from Ahmedabad, by floating these large number of fake firms, had issued fake invoices to generate fake Input Tax Credit amounting to Rs 50.24 Crores. This fake illegal credit was eventually passed on in chain to other fake identities by issuing fake invoices and without actual supply of goods and services....

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Extend all due dates under GST- Solve Issues in GST

Association of Tax Practitioners, Ernakulam has made a representation to Principal Commissioner (GST) and highlighted Difficulty faced by GST Tax Practitioners, in implementing directions contained in Circular No.142/12/2020-GST dated 09.10.2020, Failure of GST Portal Services and may other issues. They also requested to extend all due da...

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How to utilise Electronic Cash & Input Tax Credit Ledger Balance

After submitting the GSTR-3B return, I was trying to make payment of the tax and was trying to offset my liability from the Electronic Cash Ledger; however I faced error. On what basis can I utilize the balance in Electronic Cash ledger?...

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How to compare GST Liability Declared and ITC Claimed

A. FAQs on Comparison of Liability Declared and ITC Claimed General GST Tax Liabilities and ITC Comparison Report Q.1 What is GST Tax Liabilities and ITC Comparison Report? Ans: The GST Tax liabilities and ITC Comparison report is the comparison of liability declared and ITC claimed by the Taxpayer. The Tax Liabilities and ITC Comparison ...

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Request to extend time to file GSTR-3B for September, 2020

Request for extension of time to file GST return in Form GSTR-3B for the month of September, 2020 by registered tax payers having turnover of more than Rs. 5 Crores which would include time to claim ITC of 2019-20....

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Representation on GST Audit, Notices, ITC, Late Fees issues & Solution

AIMTPA has made a representation to Smt. Nirmala Sitharaman, Finance Minister and discussed prevailing Issues in GST and their probable solutions that can be acceptable to all. They discussed the issue of GST Late Fees, The unanswered question of section 16(4), Issues related to Departmental Audit under section 65 and Rule 36(4) issues. R...

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GSTR-3B Calculation Sheet for Monthly GST Calculation

GSTR-3B Calculation Sheet, Hello, My Self Ashok Mali and I have prepared the GSTR-3B Calculation Sheet for Monthly GST Calculation. This GSTR-3B calculation Sheet can be used to calculate Monthly GST liability along with late fees and Interest if Any. In this calculation sheet Set-Off of GST done Automatically as per provisions of Sectio...

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Can Input Tax Credit for FY 2019-20 be claimed after September 2020? YES, YOU MAY

Can Input Tax Credit for FY 2019-20 be claimed after September 2020..? YES, YOU MAY Few days ago, I came to know that Confederation of GST Professionals and Industries filed a writ petition before the Hon’ble Bombay High Court for the extension of due date of GSTR-9 / GSTR-9C to 31st December 2020....

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HC Grants Bail to accused in Wrongful ITC availment case

Sandeep Goyal Vs Union Of India (Rajstan High Court)

Sandeep Goyal Vs Union Of India (Rajsthan High Court) Learned counsel for the respondent has opposed the petitions and has submitted that allegations levelled against the petitioners were serious in nature. After thorough investigation of the case it transpired that accused had created 75 fake firms and had issued GST invoices of taxable...

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ITC of Education Cess, SHEC & KKC cannot be claimed against GST: HC

Assistant Commissioner of CGST and Central Excise Vs Sutherland Global Services Private Limited (Madras High Court)

Assistant Commissioner of CGST and Central Excise Vs Sutherland Global Services Private Limited (Madras High Court) Whether the Assessee is entitled to utilise and set off the accumulated unutilised amount of Education Cess (EC), Secondary and Higher Education Cess (SHEC) and Krishi Kalyan Cess (KKC), all jointly referred to as the “...

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Availability of ITC in case of sale, merger, demerger, amalgamation, lease or transfer of the business

To get benefit of synergy etc, there is need for need for change in the organizational structure, or business model of a company/business entity. Restructuring of the business is increasing day by day in consideration to expand the business. In the restructuring of the business, one thing which is more important i.e. un-utilised Input Tax...

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Taking of ITC in case of Renting Property – With Immediate Actions Required

What is the position of ITC 1. when a new building is being constructed for purpose of letting it out 2. Repairs & renovations are done on an existing building 3. Is there any other suggestion you could give so that ITC on all the above items used in a building could be claimed against rental income...

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Interest on ITC wrongly shown in GSTR 3B but not utilised against liability

First, let us have a look at the relevant sections of the CGST Act in order to determine whether interest is applicable on input tax credit which is shown wrongly in the return but not utilised against the payment of output tax liability, as below: According to section 50 (3) of CGST Act, a taxable […]...

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Correct ITC errors of FY 19-20 before Sept 2020 GST return

The return of September month is the most significant one in GST.As it is the last chance for rectification of few mistakes in previous returns. Taxpayers need to check whether there are any differences in the outward supplies between the books and that as per GST Returns. If any differences exist, then taxpayers need to rectify the same,...

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Request to relax Penalty, ITC Rule 36(4) & HSN code compulsion

Representation for Waiver of Penalty under GST Law, relaxation of RULE 36 (Taxpayer can avail ITC (+10%) what is reflected in GSTR-2A)  and relaxation of requirement of 6 Digit HSN Code. ...

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Various aspects of GSTR-2B (auto populated Input statement) & Comparison with GSTR-2A

1.What is GSTR-2B? Form GSTR-2B is auto generated statement of ITC available, as the details submitted by their suppliers, through GSTR-1, GSTR-5 and GSTR-6.it also contains information of import from the ICEGATE system including inward supplies of goods received from Special Economic Zone.  GSTR-2B can be used to take exact input in GST...

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The Curious Case of Missing GST Invoices

Generally a person is liable for his wrongful acts and one cannot be held liable for the acts done by others. In legal terms this is doctrine of Vicarious Liability and in the layman’s term it is the law of karma. Admittedly no person can be or shall be punished for the act done by […]...

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Clarification on availment GST ITC for Feb, 20 to Aug, 20 – Rule 36(4)

CBIC has issued a Departmental Circular No 142/12/2020- GST on 9th October, 2020 clarifying applicability of Rule 36(4) of the CGST Rules, 2017 for the months of February 20 to August 2020. Earlier on 11th November, 2019 CBIC had clarified that ITC is to be availed based on Invoices or debit notes reported by suppliers. […]...

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HC Reject Bail Application against Offense of Creating Fake Firms & Claiming Fraudulent ITC

Commissioner, CGST, Delhi West Vs Amit Kumar Jain (Patiala House Court)

In the instant case, the petitioner is filing the petition for requesting to grant the bail against the offense committed under GST by creating fake firms and claiming such fraudulent input tax credit....

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

Last date of filing of declaration forms is September 30,2020. It is requested to extend the due dates of declaration forms like C-forms from September 30,2020 to December 31,2020. Due to COVID 19 situation, it is very difficult to make the compliance....

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CBIC clarifies CGST ITC Rule 36(4) for Feb, 2020 to Aug, 2020

Circular No. 142/12/2020- GST (09/10/2020)

Condition made under sub-rule (4) of rule 36 of the CGST Rules shall apply cumulatively for the tax period February, March, April, May, June, July and August, 2020 and that the return in FORM GSTR-3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months....

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DGGI arrest a person for passing fake GST ITC of Rs 190 crore

Release ID: 1663176 (09/10/2020)

DGGI Gurugram Zonal Unit arrest one person on charges of creating and operating fictitious firms on forged documents and passing fake input tax credit of Rs 190 crore...

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DGGI busts companies claiming fraudulent ITC & refund of Rs. 61 crore

Release ID: 1662983 (09/10/2020)

An intelligence was developed by the officers of DGGI that few exporter companies were engaged in fraudulent availment of Input Tax Credit (ITC) on the invoices of non-existing and fictitious firms or such firms which apparently do not have any purchases themselves....

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No ITC credit available on lift installation charges

The Hon’ble AAAR, Maharashtra in Re: M/s Las Palmas Co-operative Housing Society [Order No. MAH/AAAR/RS-SK/24/2020-21 dated July 20, 2020] held that the input tax credit (ITC) in respect of GST paid on lift installation charges paid to lift contractor shall not be available in terms of Section 16(2)(b) read with Section 17(5)(c) and 17(...

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End of suspension of GST Rule 36(4)

The emphasis of the provision is to restrict the ITC claimed by registered person in GSTR 3B whose corresponding details of sales have not been uploaded on GST Portal by supplier in his GSTR – 1 (i.e. GSTR – 1 have not been filed by supplier) thereby not visible to the recipient in its GSTR – 2A (Auto-populated return)....

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NO ITC to Co-Op Society on lift installation charges

In re Las Palmas Co-Op. Housing Society (GST AAAR Maharashtra)

In re Las Palmas Co-Op. Housing Society (GST AAAR Maharashtra) The Maharashtra Appellate Authority for Advance Ruling while upholding the ruling given by the Maharastra Advance Ruling Authority held that the Appellant will not be eligible to avail the ITC in respect of the lift installation charges paid to the lift contractor, in terms of...

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GST ITC Rejection through a non speaking order is bad in law

Jay Jay Mills (India) Pvt. Ltd. Vs The State Tax Officer (Madras High Court)

In the present case, the petitioner had made an application for refund under Section 54 of the Act and when the respondent had issued notice to them for rejection of the ineligible goods and services of SGST, CGST and IGST, they have given a detailed reply, objecting to the All these objections were required to be dealt with by the author...

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GSTR 2B with effect from August 2020: All You Need to Know

 Quick View:  GSTR 2B :  An informative statement Useful for  :  All taxpayer Effective from  :  August 2020 onward Available to download :  12th of subsequent month Nature  :  Static (data will not be changed once published)  Introduction GSTN has incorporated a new functionality on its portal by enabling GSTR 2B with effect f...

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Allowabilty of Input Tax Credit on Lift Under GST

♠ As per Section 16(1) of CGST Act 2017, Every registered taxable person shall, subject to such conditions and restrictions as may be prescribed and within the time and manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services to him which are used […]...

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Extend ITC availment, GSTR-9 & 9C Due dates till 31.03.2021

Request for extension of availing ITC for F.Y. 2019-20 till Mar 2021 return, Continue relaxation in RULE 36 till 31.03.2021 which says that (Taxpayer can avail ITC (+10%) what is reflected in GSTR-2A) and Extend due date of Annual Return in form GSTR 9 & GSTR 9C for Year 2018-19 till 31.03.2021....

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Breakwater not Plant & Machinery- ITC not eligible- AAAR

In re Konkan LNG Private Limited. (GST AAAR Maharashtra)

In re  Konkan LNG Private Limited. (GST AAAR Maharashtra) The Maharashtra Appellate Authority confirmed the Maharashtra Advance Ruling Autority Order by holding that  the Appellant is not eligible for taking ITC in terms of section 16  read with section 17  of the MGST ACT / CGST ACT ( CGST/ SGST / IGST ) on construction […]...

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Pay GST on input services, Claim ITC & then claim Refund: HC to CDRSL

CIAL Duty Free And Retail Services Ltd (CDRSL) Vs. Union of India (Kerala High Court)

CIAL Duty Free And Retail Services Ltd (CDRSL) Vs. Union of India (Kerala High Court) Kerala High Court held that petitioner shall pay the GST on input services including Concession Fee and claim ITC of the entire tax amount and thereafter claim refund of the same by following the procedure prescribed under Section 54(3) of […]...

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Role of Payment of consideration in availment of ITC under GST

Role of Payment of consideration in availment of Input tax credit (ITC) under GST Objective and scope: – 1. whether the consideration for any supply can be paid by any other person other than the recipient? 2.If consideration is paid by 3rd party i.e. someone else then whether credit\exemption is available to recipient though there ...

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Relief in Late Fees of GSTR-4 or 10 & Change in ITC navigation

GSTN Press Release (23/09/2020)

Relief in late fees to Taxpayers filing Form GSTR-4 or 10 and change in navigation of Comparison of liability declared and ITC claimed report I. Relief to Composition Taxpayers in late fees for delayed filing of Form GSTR-4 (Quarterly Return): a. Vide Notification No 67/2020 dated 21.09.2020, the taxpayers who were under Composition Schem...

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GST Refund under inverted rate structure- decision inverted!

The latest judgement of Hon High Court of Madras in the case of Tvl. Transtonnelstroy Afcons Joint venture on refund of input tax credit on account of inverted rate structure is contradictory to the judgement of Hon Gujarat High Court in the case of VKC Footsteps on the same issue. Now this matter is to […]...

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Know Your Supplier VIS a VIS Rule 86A of CGST Rule, 2017

Rule 86A has been put in place w.e.f 26.12.2019 which empowers Commissioner or Officer authorized in this behalf not below the rank of Assistant Commissioner to restrict the use of input tax credit from electronic credit ledger ...

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Blocking of credits under Rule 86A ­procedure to follow

Circular No. 8/2020 (21/09/2020)

Clarifications have been sought by the Joint Commissioners of Territorial Divisions based on the inputs of the Authorised Officer under Rule 86A while undertaking blocking of credit under the said rule. Broadly, the issues faced by them are classifed as below:...

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Form GST – ITC 01

Form GST – ITC 01 is a declaration form filed on GST portal for claiming the input tax credit by taxpayers newly registered under GST. Filing of this form is mandatory to claim ITC on such stock....

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Eligibility of Recipient to Claim ITC in case of Mis-Classification by Supplier

The right to claim ITC on goods and/or services received by the Recipient is never disputed both in GST law and erstwhile VAT regimes. However, what should be the correct amount of ITC which can be claimed by the recipient has been a matter of legal debate in both GST law and erstwhile Indirect Taxation regime....

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Cost recovery from employees – Whether taxable & ITC implications

1. An employer may be providing certain facilities (e.g. transportation, canteen, etc.) to its employees as part of the employment contract. For the sake of maintaining accountability, the employer may also be recovering a certain portion of the cost incurred from the salaries payable to the said employees. Now the following issues will a...

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ITC on Lift available or not under GST

Lift is not a machine , it is part of Building, is it true . is the ITC claimable on purchase of Lift . Let us discuss whether lift is machine or Building only we would reach to conclusion of ITC is eligibility. Section 17(5) blocks credit of works contract and goods or services received […]...

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Bogus GST ITC- HC rejects bail to prevent Tampering of Evidence

Mr. Ashok Kumar Vs Commissioner CGST & Central Excise (Bombay High Court)

Mr. Ashok Kumar Vs Commissioner CGST & Central Excise (Bombay High Court) Taking into consideration, the facts of the case, though the officers under the CGST Act, cannot seek custody of the arrested persons for completing the investigation, respondent’s contention that applicant’s detention in custody is necessary to prevent him ...

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4 important Videos on GST Credit & RCM liability

Videos on multiple topics of Outward supply and GST ITC for preparation & hand holding of GSTR 9/GSTR 9C for FY 2018-19.  These videos are very important for basic understanding of taxpayers, professionals, etc. Speaker in the all the Videos is Learned CA Bimal Jain. Videos are on following for Topics- 1. Reconciliation of GST [&hell...

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Inquiry before DGGSTI -ITC on fake GST invoices – FAQs

Inquiry before DGGSTI in respect of allegation of fraudulent ITC on fake invoices under GST Act Q.1. Nodal officer is State Government SGST officer and DGGSTI is CGST officer who has a power to issue summons under the Act? Ans:- As far as inquiry investigation is concern DGGSTI has a power to investigate the case […]...

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HC accepts WRIT on ITC blockage due to non-filing of GSTR 3B

M/s Kalpsutra Gujarat Vs The Union of India (Gujarat High Court)

Kalpsutra Gujarat Vs Union of India (Gujarat High Court) HC issued notice to the department to understand from the respondents whether the omission on the part of the third party (Seller) in filing the GSTR-3B for the relevant period would be sufficient to block the Input Tax Credit of the writ applicant. We would also […]...

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Permit ITC availment for period till 31.03.2020 upto 31.12.2020

Request for permitting taxpayers for availment of Input Tax Credit under GST under section 16 up to the period completed on 31st March 2020 up to 31st December 2020....

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Permit availment of ITC under GST pertaining to FY 2019-20: ICAI

Request for permitting availment of input tax credit under GST pertaining to Financial Year 2019-20 and correction in GSTR- 1 till March, 2021. Institute of Charted Accountant of India ICAI/IDTC/2020-21/Rep/16 10th September, 2020 Shri S.K Rahman Joint Secretary, Goods and Services Tax Council, 56′ Floor, Tower II, Jeevan Bharti Bui...

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ITC restriction against diagnostic or investigative services

In re Siddalingappa Palalochana Rakshit (Bangalore Medical System) (GST AAR Karnataka)

In re Siddalingappa Palalochana Rakshit (Bangalore Medical System) (GST AAR Karnataka) In the instant case the applicant established a medical diagnostic laboratory to carry out diagnostic or investigative services of diseases. Thus the applicant qualifies to be a clinical establishment. It is clear, from the foregoing, that the services ...

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Recovery of Transportation charges by employer from employees not taxable

Recovery of Transportation charges by employer from employees not taxable, ITC to extent of transportation cost borne eligible The Hon’ble AAR, Maharashtra in Re: Tata Motors Limited [GST-ARA-23/2019-20/B-46 dated August 25, 2020] held that w.e.f. February 1, 2019 input tax credit (ITC) shall be available to employer (Tata Motors) on GS...

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No GST on Transportation charges recovered from employees

In re Tata Motors Limited (GST AAR Maharashtra)

Whether GST is applicable on nominal amount recovered by Applicants from their employees for usage of employee bus transportation facility in non-air conditioned bus....

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GST on Transportation Services Provided To Employees

GST On Transportation Services Provided To Employees 1. It is held by AAR Maharashtra in re of Tata Motors Limited [ 2020] that Input Tax Credit (ITC) is available on GST charged by the service provider on the hiring of bus/motor vehicle having a seating capacity of more than thirteen person for transportation of employees […]...

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Refund of ITC on Input Services-  Logic defies the Lawgic

Matter to be analysed- Gujarat High Court allows the refund of unutilized ITC on Input Services. Ever since the advent of GST the refund of ITC has been a matter of grave concern and a tussle for the taxpayer to get it conveniently from revenue authorities who are busy jostling for ramping up the collection, […]...

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Claim of Input Tax Credit (ITC) Refund by Special Economic Zone (SEZ)

Britannia Industries Limited Vs. Union of India (Gujarat High Court)

Britannia Industries Limited Vs. Union of India (Gujarat High Court) 1. It is held by Honourable Gujrat High Court in Britania Industries Limited case that the SEZ unit can claim a refund of ITC distributed by Input Service Distributor (ISD). 2. Brief Facts of the Case: M/S Britania Industries, a limited Company filed the petition [&helli...

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