Goods and Services Tax : The issue was whether buyers can claim ITC when suppliers default on tax payment. The court upheld denial, emphasizing ITC is cond...
Goods and Services Tax : Highlights that system-based NGTP tagging cannot replace proper verification before denying ITC. Key takeaway: factual investigati...
Goods and Services Tax : Courts ruled that denying ITC due to supplier non-payment is unjust when buyers act in good faith. The key takeaway is that bona f...
Goods and Services Tax : This explains how courts have imposed strict safeguards on ITC blocking under Rule 86A. The key takeaway is that due process is no...
Goods and Services Tax : The article highlights how aggressive GST actions impact genuine businesses. The key takeaway is the need for balanced enforcement...
Goods and Services Tax : Authorities uncovered fraudulent ITC claims based on fake invoices without actual supply of goods or services. The accused was arr...
Goods and Services Tax : Authorities uncovered fraudulent ITC claims exceeding ₹8 crore without actual supply of goods. The ruling highlights that ITC is...
Goods and Services Tax : CGST Delhi South arrested a director for allegedly availing ₹6.53 crore in fraudulent ITC based on bogus invoices worth ₹36.28...
Goods and Services Tax : Government advisories revised the IMS process to stop unfair tax escalation on credit note rejection. The key takeaway is balanced...
Goods and Services Tax : Important change in Table 6 of GSTR-9 for FY 24-25 - Taxpayers can now report ITC of previous financial year that was claimed in ...
Goods and Services Tax : The issue involved alleged cyber fraud where funds were credited to the petitioner’s account. The Court granted relief consideri...
Goods and Services Tax : The Court examined whether ITC can be denied when the supplier fails to deposit tax. It upheld the provision, ruling that ITC depe...
Goods and Services Tax : The Tribunal remanded the case after finding that ITC reversals on unsold inventory were not adequately examined. It directed fres...
Goods and Services Tax : Dispute on ITC mismatch between returns was remitted after ex-parte order, allowing reconciliation upon 10% pre-deposit. Key takea...
Goods and Services Tax : The High Court did not decide the constitutional challenge but directed authorities to reconsider the taxpayer’s objections and ...
Goods and Services Tax : The portal will restrict GSTR-3B filing if ITC reclaims exceed ledger balances. The key takeaway is mandatory correction of excess...
Goods and Services Tax : The Delhi government allows registered taxpayers to rectify GST orders where previously denied ITC is now eligible under section 1...
Goods and Services Tax : Rajasthan GST circular directs officers to reject Input Tax Credit claims for taxpayers who register after 30 days from becoming l...
Goods and Services Tax : Learn about the Rajasthan Commercial Taxes Department's new directive on verifying and rejecting Input Tax Credit claims for busin...
Goods and Services Tax : CBIC unveils trade facilitation measures, combats counterfeit currency, and detects ₹80 crore GST fraud. Key developments from I...
The provisions of Section 49 was amended and Section 49A and Section 49B were inserted vide Central Goods and Services Tax (Amendment) Act, 2018 [hereinafter referred to as the CGST (Amendment) Act] and came into effect from 1st February 2019. The amendment led to an of accumulation of input tax credit for SGST/UTGST in electronic […]
The restriction of 20% applies with respect to eligible input tax credit available to the recipient in respect of invoices or debit notes the details of which have been uploaded by the suppliers under subsection (1) of section 37 as on the due date of filing of the returns in FORM GSTR 1 of the suppliers for the said tax period.
The government has taken a pre-emptive action to curb incorrect Input Tax Credit (ITC) claims after various frauds were unearthed in the past year on claimed ITC on fake invoices, or through physically non-existent businesses. To ensure, ITC claimed is bona-fide and eligible, a new rule was inserted vide Rule 36(4) on 9th October 2019 […]
Ref: Notification No. 49/2019 – Central Tax dated 9 Oct 2019 which add Rule 36(4) of CGST Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37, shall not exceed 20 per cent. […]
Government now showing full intention to stop ITC leakages and in order to shove taxpayers to timely file their statement of outward supplies, has come up with imposition of restrictions on availment of input tax credit. This means when a supplier does not file its GSTR-1 then receiver will not be able to get its […]
Input tax credit on hotel accommodation/stay has been a controversial issue due to the place of supply of services of service providers after the Goods and Services Tax regime. GST is a destination based tax i.e. consumption tax, which means the tax will be levied where goods and services are consumed and will accrue to […]
Sub-rule (4) to Rule 36 restricting input tax credit (“ITC”) has been inserted with effect from 09.10.2019 vide Notification No. 49/2019 – Central Tax dt. 09.10.2019. Said sub-rule reads as under: “(4) Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not […]
Below are the clarifications sorted vide Cir No 123/42/2019 dated 11 Nov 2019: 1. Restriction of 20% availment of ITC is on consolidated basis (not supplier wise) w.e.f 9th Oct 2019. Further, the said restriction for availing ITC is in respect of ONLY those invoices / Dr notes, details of which are required to be […]
Let us discuss the practical process/journal entries of availing ITC restricted to 20% more of invoices uploaded by the suppliers in our books of accounts.
Restriction in availment of input tax credit (ITC) in terms of sub-rule (4) of rule 36 of CGST Rules, 2017 (i.e. 80-20 Rule). Reference:- Circular No. 123/42/2019– Dt. 11-11-2019, in regards to the clarification on availment of ITC from Current Month For your ease of understanding, we summarised the same circular as follows; Particulars Remarks Whether Common Portal Restrict […]
