Input Tax Credit

Cenvat Credit via TRAN 1 can be claimed till 30 June 2020
Input Tax Credit
CA. Kapil Mittal

Cenvat Credit via TRAN 1 filing can be claimed till 30 June 2020

The Hon’ble Delhi High Court under the division bench of Honourable Justice Vipin Sanghi and Honourable Justice Sanjeev Narula has passed a landmark judgement allowing to file transition credit via TRAN-1 till 30th June 2020. It further directed the tax department to widely convey this judgement to file TRAN-1 across the public domain via publishing on their website so that whosoever could not claim the benefits can claim now.

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Reverse Charge under gst
Blog
CA. Sachin Jindal

A Close Insight into Reverse Charge Under GST (RCM)

Under Goods and Service Tax (“GST”), generally, a supplier of goods and services is liable to pay GST for the supplies, i.e., at the time of supply of goods or service supplier charges GST over sales consideration and collect the same from recipient and by due date deposit such GST amount to the account of government  On the contrary, in the case of Reverse Charge Mechanism (“RCM”) under GST, the recipient himself is liable to pay the tax for goods and services received by him instead of the supplier. Therefore, the recipient is liable for all compliance under GST. Here

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Block Credit under GST
Blog
CA. Kapil Mittal

Cases where GST Inputs are Not Available | Ineligible Input Tax Credit | Block Credit

Specific and elaborated provisions related to Input tax credit are given under Chapter V (Section 16 to 21) of Central Goods and Service Tax Act, 2017 which contains various provisions. Section 17 of CGST Act, 2017 contains provisions related to Apportionment of credit and blocked credits or where inputs tax credit are not available for utilisation i.e. ineligible Input tax credit under GST. Considering the fact that Goods and Service Tax (“GST”) is a tax based on value addition only, Input Tax credit (“ITC”) is a fundamental concept for such purpose. By availing ITC of taxes paid on Inputs, input

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Fake ITC Claims
Blog
CA. Sachin Jindal

Fake ITC Claims: CGST Departments Has Started Blocking Fake Claims

The Office of Directorate General of GST Intelligence has released a new notification to take actions against fake ITC claims. The DGGI  issued the notification in the interest of Principal Chief Commissioners and Chief Commissioners, CGST, asking them to block Input Tax Credit under the 86(1)(a) of CGST Rules 2017. As the rule suggests, the Zonal Chief Commissioners can block or unblock Input Tax Credit availed against fake invoices. The Principal DG has released the notification to take action against the ITC claims issued without the proper receipt of Goods or services. However, the notification suggested some implementation to proceed

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Clarification on Restriction in availing of input tax credit
Blog
CA. Kapil Mittal

How to Calculate 10% Provisional ITC in FORM GSTR-3B as per the New CGST Rule

Sub-rule (4) to rule 36 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the CGST Rules) has been inserted vide notification No. 49/2019-Central Tax, dated 09.10.2019. The said sub-rule provides restriction in availment of input tax credit (ITC) 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 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act). To ensure uniformity in the implementation of the provisions of the law across the field formations, the

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Tran 1
Blog
CA. Kapil Mittal

Punjab and Haryana High Court permitted filing of TRAN-1 or revision of already filed TRAN- 1 by 30 th November, 2019

Hon’ble HC permitted filing or rectification of TRAN-01 by 30 th November, 2019. Respondents may verify genuineness of claim of Petitioners but nobody shall be denied to carry forward legitimate claim of CENVAT/ITC on the ground of non-filing of TRAN-1 Petitioner was registered under Central Excise Act or Finance Act, 1994 or State VAT Laws and on the appointed date, i.e., 1 st July, 2017, Petitioner was having accumulated ITC under pre-GST regime. As per section 140 of CGST Act, 2017 read with Rule 117 and Rule 120 of CGST Rules, 2017, petitioner was permitted to carry forward ITC accumulated

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Itc under gst
Input Tax Credit
CA. Sachin Jindal

Input tax credit not reflecting in GSTR-2A, can only be availed up to 10%

1. ITC mechanism under GST Input Tax Credit (‘ITC’) Mechanism under the Goods and Services Tax (‘GST‘) law is a critical success factor for the compliance and administration of GST law in India. Currently, taxpayers do not have a facility/ opportunity to review the invoices uploaded by their suppliers, corresponding to their ITC claims. Taxpayers are reliant on their financial records to collate the data and report the same in the Monthly Return GSTR – 3B. The mechanism of having an invoice matching with automatic comparison and reconciliation for ITC as initially envisaged under the GST law, could have been

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ITC on immovable property used for renting
Input Tax Credit
CA. Kapil Mittal

Admissibility of Input tax Credit on construction of immovable property when used for renting

Judgment of Hon’ble High Court of Orissa in the matter of M/s Safari Retreats Private Limited interprets provisions of Section 17(5)(d) of CGST Act, 2017 to check admissibility of Input Tax Credit paid on procurement of goods or services used for construction of immovable property for own purpose of assessee. Hon’ble High court has held that as petitioner is paying GST on rental income which is arising out of investment on which GST has been paid and since there is no break in chain of business from point of procurement of material and services for construction till renting of immovable

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recredit of rejected itc refund
GST Refund
CA. Kapil Mittal

Input tax credit of rejected refund amount can be taken manually by taxpayer if not recredit by tax authorities

Where rejection of refund claim by the GST authorities, the rejected ITC should be recredit to Input tax credit ledger of taxpayer for utilisation. However Since there is no mechanism to do so, this resulted in certain difficulties to taxpayers in cases where the existing Input Tax Credit (‘ITC’) was not recredited by tax authorities for utilisation.  In this case, the Gujrat High Court (‘HC’) has provided valuable guidance on the subject in the case of M/s. Garden Silk Mills Ltd. Vs. Union of India (R/Spl Civil Appl No. 7397 Of 2018) vide order dated 11 April 2019. It has

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