Input Tax Credit

No Reversal of ITC on Inputs lost in Manufacturing Process
Input Tax Credit
CA. Sachin Jindal

No Reversal of ITC on Inputs lost in Manufacturing Process

ITC should be granted on the original amount of input used notwithstanding that the entire amount of input would not figure in the finished product. Therefore, Hon’ble High Court held that loss due to inherent nature of manufacturing process is not covered under Section 17(5)(h) of CGST Act, 2017 and impugned order is liable to be set aside.

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ITC On Promotional Items Under GST
Input Tax Credit
CA. Sachin Jindal

No ITC available on Promotional Items on FOC basis under GST supplied to distributors/retailers

The applicant was engaged in manufacturing activity and was selling these products through Franchisees (Carrying applicant’s brand only) and distributors/Retailers (Carrying other brands too) .  For the purpose of brand promotion, the applicant was procuring promotional items such as Carrying bag (with name of Applicant printed on it), calendes, writing pads, display boards, outdoor hoardings, uniform for employees etc. and was supplying such products to its franchisees and distributors without any cost.  The Applicant approached Hon’ble AAR to determine whether promotional items procured by the applicant are “Inputs” under CGST Act and whether he is entitled to claim ITC on

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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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Block Credit under GST
Input Tax Credit
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
Orders
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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