ADVOCATE VISHAL JOSHI

Input Tax Credit under GST | Section 16 to 18 | CGST Act 2017 By  Vishal Joshi I nput  T ax  C redit (ITC) means the amount of tax paid on the purchase of Input Goods, Input Services, and Capital Goods and includes tax paid under Reverse charge. Then at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount. This mechanism is called the utilization of input tax credit. Due to this mechanism, Input Tax Credit is the  backbone of the GST regime  because these provisions of ITC make GST a value-added tax i.e. a collection of tax at all points after allowing credit for inputs . Section 16:  Eligibility and conditions for taking Input Tax Credit 1. Eligibility Criteria :  Every Registered Person shall be entitled to take Input Tax Credit on any supply of goods or services or both to him which are used  or intended to be used  in the course or furtherance of his business and said amount w...

The Central Board Of Indirect Taxes And Customs Vide Notification No 49/2019-Central Tax New Delhi, The 9th October,2019 Through Para 3 Inserted New Sub Rule(4) In Rule 36,After Sub Rule(3) Which Reads As Follows: In The Said Rules, In Rule 36, After Sub-Rule (3), The Following Sub-Rule Shall Be Inserted, Namely:- '(4) 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. Of The Eligible Credit Available In Respect Of Invoices Or Debit Notes The Details Of Which Have Been Uploaded By The Suppliers Under Sub-Section (1) Of Section 37.' It Means That New Sub Rule 4 Of Rule 36 Is Inserted For The Invoices Which Have Not Been Uploaded By The Suppliers, A Registered Person Shall Only Avail 20% Of The ITC Which Have Been Uploaded By The Suppliers (Till Due Date I.E 10th Of Succeeding Month). OR ITC To Be Avail...

                 Maintenance of Accounts and Records under GST Regime Goods and service tax   Accounts and Records under GST – In recent times, Government has enhanced its vigilance to curb the menace of excess claim of ITC or fake invoicing. Department has stepped up investigation against such activities and in many cases genuine taxpayers also face the heat of notices for reversal of Input Tax Credit or payment of tax for fake invoicing. During detailed investigation the taxpayer at time fail to furnish proper documents or records which is required to be maintained as per GST provisions and hence they engage in protracted litigation resulting in further agony and imposition of penalty. GST Law prescribes detailed procedure for maintenance of books of accounts and records for goods or services or both. In the note below we have covered all such provisions for the ease of taxpayers. “Document” as defined under CGST RULE 2017, to  in...