Input Tax Credit Related Amendments in the Finance Bill, 2023Bhuwan Prakash

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The Tax Publishers GST--Input Tax Credit Input Tax Credit Related Amendments in the Finance Bill, 2023 Bhuwan Prakash Input tax credit is a key feature of the GST law. The provisions relating to input tax credit have been amended from time to time on recommendation of GST Council. Recently, the Finance Bill, 2023 has proposed to make few amendments relating to input tax credit which form subject matter of this article. 1. Meaning of input tax credit and its importance Input tax credit means GST paid by a taxable person on acquisition of goods or services which are used or to be further used in business. Such input tax credit amount can be reduced from the amount of GST payable on sales made or services provided by a taxable person upon fulfillment of prescribed conditions like payment of taxes by supplier, possession of invoice, furnishing of return by supplier, etc. Upon availment and utilization of input tax credit, the cash outflow of taxable persons gets reduced and working capital gets increased accordingly. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Input Tax Credit

Input Tax Credit Related Amendments in the Finance Bill, 2023

Bhuwan Prakash

Input tax credit is a key feature of the GST law. The provisions relating to input tax credit have been amended from time to time on recommendation of GST Council. Recently, the Finance Bill, 2023 has proposed to make few amendments relating to input tax credit which form subject matter of this article.

1. Meaning of input tax credit and its importance

Input tax credit means GST paid by a taxable person on acquisition of goods or services which are used or to be further used in business. Such input tax credit amount can be reduced from the amount of GST payable on sales made or services provided by a taxable person upon fulfillment of prescribed conditions like payment of taxes by supplier, possession of invoice, furnishing of return by supplier, etc. Upon availment and utilization of input tax credit, the cash outflow of taxable persons gets reduced and working capital gets increased accordingly.