Government has restricted the utilization of ITC through inserting Rule 86B and restricted the utilization of ITC upto 99% i.e. 1% of output supplies to be paid in cash each month.
Payment made to directors, which is declared as “Salary” in books of accounts and on which TDS has been deducted under section 192 of Income Tax Act, are covered under entry No. 1 of Schedule III of CGST Act. Therefore, no GST is applicable on such payment.
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.
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
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
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 and notification No. 49/2019-Central Tax. 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).
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 Punjab and Haryana High Court permitted 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 the pre-GST regime. As per section 140 of CGST Act, 2017 read with Rule 117 and Rule 120 of CGST
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
Implementation of new GST Return formats was finalized in the 31st GST Council meeting and earlier it was decided to implement the same from April 2019 onward on a trial basis and from July 2019 onwards on a compulsory basis. However, New GST Return implementation could not be made in such a manner. New GST Return Implementation Ministry of Finance has shared a transitional plan for implementation of such new GST return formats in a phased manner vide press release dated 11th June 2019 which is as follows: Month Phases of New GST Return format implementation May, 2019 A prototype of
The 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 the admissibility of ITC on immovable property used for renting that is Input Tax Credit paid on procurement of goods or services used for the construction of immovable property for own purpose of the assessee. Hon’ble High court has held that as the 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 the chain of
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