Important Definitions |
1
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| Statutory provisions governing input tax credit |
1
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| Taking of input tax credit |
1
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| Business -- Definition of |
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| Input -- Definition of |
2
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| Goods -- Definition of |
2
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| Capital goods -- Definition of |
3
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| Input service -- Definition of |
3
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| Services -- Definition of |
3
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| Input tax -- Definition of |
3
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| Input tax credit -- Definition of |
4
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| ITC on aircraft engines, parts and accessories |
4
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Allowability of Input Tax Credit |
5
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| Taking of input tax credit |
5
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| Used or intended to be used in the course or furtherance of business -- Scope of |
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| Tax paid on real estate brokerage services for renting of property |
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| Tax paid on maintenance and furnishing of guest houses |
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| Services availed by way of plantation outside factory area, not allowable |
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| IGST paid on 'bill to-shop to' model |
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| Goods and services used for maintenance of township/residential colony |
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| ITC claimed in return is allowable on provisional basis |
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| ITC not claimed in return, not available for utilization |
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| Conditions for taking input tax credit |
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| Receipt of goods or services |
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| Goods received in lots or instalments |
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| Failure to pay value of supply alongwith tax within 180 days -- Consequences of |
8
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| -- Statutory provisions |
8
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| -- ITC can be re-claimed after making payment |
9
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| -- Value of supplies between distinct person is deemed to be paid |
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| -- Amount which a supplier is liable to pay in relation to supply, is deemed to be received |
9
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| -- No reversal required where consideration is paid through book adjustment |
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| -- Reversal of ITC not required in case of receipt of post-purchase discount |
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| -- Retention money for goods or services |
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| ITC not allowable where demand has been confirmed on account of fraud, etc. |
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| Tax paid in other States/Union Territory is not allowable as ITC |
10
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| Where goods have been delivered to a person other than taxable person |
11
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| Where services are provided by the supplier on direction of other person |
11
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| Taking of input tax credit by non-resident |
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| Restriction on availment of ITC not reflected in Form 2A |
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| -- The restriction |
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| -- Restriction is applicable only w.e.f. 9-10-2019 |
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| -- Restriction not applicable in certain cases |
12
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| -- Restriction is to be calculated on consolidated basis |
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| -- Point of time for ascertaining ITC as per Form GSTR-2A |
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| -- Cumulative application of rule 36(4) for certain periods |
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| -- Illustrations |
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| -- Balance of ITC can be claimed in succeeding month |
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| Restriction on use of amount available in electronic credit ledger |
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| Documents required for claiming input tax credit |
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| Documents must contain prescribed particulars |
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| Order of utilization of input tax credit |
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| Time limit for claiming input tax credit |
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| -- Statutory provision |
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| -- Provision illustrated |
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| -- Time limit for taking input tax credit not applicable for re-availing of credit |
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| -- In case of reverse charge, time period to be reckoned from date of payment |
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| -- In case of debit notes, time period to be reckoned from date of issuance |
17
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| -- Time limit for claiming ITC pertaining to FY 2017-18 |
17
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| Power of Commissioner to restrict availment of input tax credit |
18
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| No input tax credit allowable if depreciation is claimed on tax component |
18
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| Transfer of credit on obtaining separate registration for multiple places of business within a State or Union Territory |
19
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| Non-utilization of disputed credit carried forward |
19
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| Non-transition of Blocked Credit |
20
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| Payment of ITC on cancellation of registration |
20
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| -- Amount to be paid |
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| -- Manner of calculation of amount to be paid in respect of inputs held in stock |
21
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| -- Manner of calculation of amount to be paid in respect of capital goods |
21
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| -- Amount payable in case of capital goods or plant and machinery |
21
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| -- Details to be furnished in Form GSTR-10 |
21
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APPENDIX |
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| Clarification in Respect of Utilization of Input Tax Credit Under GST -- Reg. [Circular No. 98/17/2019-GST, dt. 23-4-2019] |
22
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| Restriction in Availment of Input Tax Credit in terms of sub-rule (4) of Rule 36 of CGST Rules, 2017 -- Regarding [Circular No. 123/42/2019-GST, dt. 11-11-2019] |
24
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| Central Goods and Services Tax (Second Removal of Difficulties) Order, 2018 [Order No. 02/2018-Central Tax, dt. 31-12-2018] |
27
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| Directions under Section 168 of the CGST Act regarding Non-Transition of CENVAT Credit under Section 140 of CGST Act or Non-Utilization thereof in Certain Cases -- Regarding [Circular No. 33/07/2018-GST, dt. 23-02-2018] |
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Electronic Credit Ledger |
30
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| What is electronic credit ledger? |
30
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| ITC claimed in GSTR-3B is credited to electronic credit ledger on provisional basis |
30
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| Sequence of utilization of electronic credit ledger |
30
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| Penalty, interest or late fee cannot be paid through electronic credit ledger |
31
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| Amount claimed as refund shall be debited in electronic credit ledger |
31
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| Re-credit of refund to electronic credit ledger |
31
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| No direct entry is allowed |
32
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| Discrepancy to be communated to jurisdictional officer |
32
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| Power of Commissioner to restrict utilization of input tax credit |
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| Existence of relevant material is a pre-condition for formation of opinion |
33
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| Restriction on use of amount available in electronic credit ledger |
33
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Goods and Services Not Eligible for ITC |
35
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| Relevant statutory provisions |
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| ITC on motor vehicles and other conveyances [Position upto 31-1-2019] |
35
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| -- When was ITC on motor vehicles and conveyance allowable |
35
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| -- Motor vehicle -- Meaning of |
36
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| -- Other Conveyances -- Meaning of |
36
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| -- Provision illustrated |
36
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| -- Excavators and road rollers are motor vehicles |
36
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| -- Excavator moving on chains, is not motor vehicle |
36
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| -- Cash carry vans used for transporting cash -- Allowability of input tax credit |
36
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| -- Vehicle used for providing mobile laboratory services |
37
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| -- Motor car purchases for demonstration purpose |
37
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| -- Cars purchased and supplied on lease rent basis |
37
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| -- Hiring of motor vehicle having seating capacity of more than thirteen persons |
37
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| -- ITC on lift installation charges paid by a housing society |
38
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| -- Supply of motor vehicles on monthly rent |
38
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| ITC on motor vehicles and other conveyances [Position w.e.f. 1-2-2019] |
38
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| -- Motor vehicles for transportation of passengers |
38
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| -- Purchase of ambulance for employees |
38
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| -- Motor vehicles for transportation of goods |
39
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| -- ITC on vessels and aircraft |
39
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| General insurance services |
39
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| Servicing, repairs and maintenance of vehicles, vessels, aircraft, etc. |
40
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| ITC in respect of food and beverages |
41
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| ITC on outdoor catering service |
41
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| ITC on beauty treatment service |
42
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| ITC on health services |
42
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| ITC on cosmetic and plastic surgery |
42
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| ITC on leasing, renting or hiring of motor vehicles, vessels or aircraft |
43
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| Membership of club |
44
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| Membership of a health and fitness centre |
44
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| Rent-a-cab service |
44
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| Life insurance service |
45
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| Health insurance |
45
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| Travel benefits extended to employees on vacation |
46
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| Works contract service |
46
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| -- When ITC of works contract service is not allowable |
46
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| -- Works contract -- Meaning of |
46
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| -- Construction -- Meanng of |
46
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| -- Plant and Machinery -- Meaning of |
46
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| -- GST paid on maintenance contract of building |
47
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| -- ITC i.r.o. goods and services used for construction of road |
47
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| -- Bunds constructed for manufacture of salt and bromine chemicals |
47
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| -- Construction of various structures in amusement park |
48
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| -- Works contract service provided to State municipal corporation |
48
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| Goods or services received for construction of an immovable property |
48
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| -- Statutory provisions |
48
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| -- Plant and machinery -- Meaning of |
49
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| -- Construction -- Meanng of |
49
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| -- Goods purchased for the purpose of maintenance of immovable property |
49
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| -- Orissa High Court decision in Safari Retreats' case |
49
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| -- Tax on lease rent paid during pre-operative period for leasehold land |
50
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| -- Goods and services used for construction of immovable property |
50
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| -- AAR Rajasthan ruling in the case of Rambagh Palace Hotels |
50
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| -- ITC of tax paid on lease rent for leasehold land |
52
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| -- Paver blocks purchased for laying in parking area |
52
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| Immovable property -- Meaning of |
52
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| -- Machinery embedded to earth |
52
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| -- Machinery fixed to earth only for beneficial enjoyment or efficiency is not immovable property |
53
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| Tax paid under composition levy |
53
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| Goods or services received by a non-resident taxable person |
53
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| Goods or services or both used for personal consumption |
53
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| -- Scope of term personal consumption |
53
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| -- Maintenance of in-house hospital for employees |
53
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| Goods lost, stolen, destroyed, written off, etc. |
54
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| -- When ITC is not allowable |
54
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| -- No reversal of ITC required where finished goods are destroyed |
54
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| -- Supply of free drug samples by pharmaceutical companies |
54
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| -- ITC in respect of 'buy one, get one free' offer |
54
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| -- Supply of gold coins for free |
55
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| -- Supply between distinct person is regarded as taxable supply |
55
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| -- No ITC on goods or services supplies towards promotional schemes |
55
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| -- ITC on free tickets provided as complementry tickets |
55
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| -- Goods distributed on free basis under CSR expenses |
56
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| Post-sale discount vis-a-vis input tax credit |
56
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| -- Statutory provisions |
56
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| -- No reversal of ITC required in case of commercial credit note |
56
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| -- ITC in respect of discounts including 'buy more save more' offers |
57
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| Tax paid under section 74 |
57
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| Tax paid under section 129 |
57
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| Tax paid under section 130 |
58
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APPENDIX |
59
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| Clarfication on various doubts related to treatment of sales promotion under GST -- Regarding [Circular No. 92/11/2019-GST, dt. 7-3-2019] |
59
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Blocked ITC Under Section 17(1) |
62
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| Goods or services used partly for business and partly for non-business purposes -- Allowability of ITC |
62
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| Packing material used for packing both taxable as well as exempted supply |
62
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| Tax paid on security agency bill and housekeeping bill by an entertainment mall |
62
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| Goods and services used for supply of taxable O&M service |
63
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| Manner of determination of input tax credit under section 17(1) |
63
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| Calculation of eligible input tax credit, finally |
65
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| Calculation of Input Tax Credit in case of supply of services covered by clause (b) of paragraph 5 of Schedule II |
65
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| Calculation of input tax credit in case of supply of services covered by clause (b) of paragraph 5 of the Schedule II of the CGST Act, finally |
66
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APPENDIX |
68
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| The Central Goods and Services Tax (Removal of Difficulties) Order, 2019 [Order No. 4/2018-Central Tax, dt. 29-03-2019] |
68
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Blocked ITC Under Section 17(2) |
69
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| Goods or services used partly for effecting taxable supplies and partly for exempt supplies -- Allowability of ITC |
69
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| Exempt supply -- Meaning and scope |
69
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| -- Meaning of exempt supply |
69
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| -- Value of non-taxable supply is also regarded as an exempt supply |
70
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| -- Supplies not included in aggregate value of exempt supplies |
70
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| Dispensing medical service to employees |
70
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| Tax paid on purchase of equipments, furniture, etc. |
71
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| Goods and services used in installation of Renewable Power Generation |
71
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| ITC in respect of medicines supplied by hospitals to in-patients/out-patients |
71
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| AAR Rajasthan Bench ruling in Pramod Kumar Singala's case |
71
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| Manner of determination of input tax credit under section 17(2) |
72
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| Calculation of eligible input tax credit, finally |
74
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| Calculation of Input Tax Credit in case of supply of services covered by clause (b) of paragraph 5 of Schedule II of the CGST Act |
75
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| Calculation of input tax credit in case of supply of services covered by clause (b) of paragraph 5 of Schedule II of the CGST Act, finally |
76
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| Manner of determination of input tax credit in respect of capital goods and reversal thereof |
77
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| Manner of determination of input tax credit in respect of capital goods in case of construction services |
80
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| Other points relevant to calculation of ITC in respect of capital goods |
82
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| Special provisions for availing of input tax credit by banking company, financial institution, etc. |
82
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| Procedure to be followed by a banking company or a financial institution |
83
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Input Tax Credit in Special Circumstances |
84
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| Input tax credit on inputs held in stock at the time of taking registration |
84
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| -- Allowability of input tax credit |
84
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| -- No input tax credit allowable in respect of capital goods |
84
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| -- Time limit for taking input tax credit |
84
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| -- Procedure to be followed |
85
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| Input tax credit on inputs held in stock at the time of taking voluntary registration |
85
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| -- Allowability of input tax credit |
85
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| -- No input tax credit allowable in respect of capital goods |
85
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| -- Time limit for taking input tax credit |
85
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| -- Provision illustrated |
85
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| -- Procedure to be followed |
85
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| ITC in case of switching over from composition levy to normal levy |
85
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| -- Allowability of input tax credit |
85
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| -- Reduction of credit in case of capital goods |
86
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| -- Time limit for taking input tax credit |
86
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| -- Procedure to be followed |
86
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| Input tax credit in case of exempt supply becoming taxable supply |
86
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| -- Allowability of input tax credit |
86
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| -- Reduction of input tax credit in case of capital goods |
87
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| -- Time limit for taking credit |
87
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| -- Procedure to be followed |
87
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| Procedure to be followed for taking input tax credit under section 18(1) |
87
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| Input tax credit in case of switching over from normal levy to composition levy or in case of goods or services or both becoming exempt |
88
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| Manner of reversal of credit under section 18(4) |
89
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| -- For inputs lying in stock |
89
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| -- For capital goods lying in stock |
89
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| -- Amount shall be calculated separately for CGST, SGST and IGST |
89
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| -- Furnishing of details in Form GST ITC-03 |
89
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| Supply of capital goods or plant and machinery on which input tax credit has been taken -- Consequences of |
89
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| -- Amount to be paid |
89
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| -- Amount to be reduced from input tax credit |
90
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| Allowability of input tax credit to a banking company or a financial institution |
90
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| -- Different options for availment of input tax credit |
90
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| -- Procedure to be followed |
91
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| -- Co-operative credit Society Ltd. is a financial institution |
91
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| -- National Dairy Development Board is a financial institution |
91
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Transfer of ITC in Certain Cases |
92
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| Transfer of credit on sale, merger, amalgamation, lease or transfer of a business |
92
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| Procedure for transfer of credit under section 18(3) |
92
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| CBIC clarification on apportionment of input tax credit |
93
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| -- Value of assets of new units to be considered at State level |
93
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| -- Formula for apportionment is applicable for all forms of business re-organization |
94
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| -- Ratio of value of assets to be applied to total amount of unutilized ITC |
94
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| Transfer of input tax credit in case of death of sole proprietor |
94
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| -- Transferee/successor to apply for new registration |
94
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| -- Addition of legal heir as authorised person in GSTIN of deceased |
95
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| -- Transfer of input tax credit and liability |
95
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| -- Manner of transfer of credit to GSTIN of transfree |
95
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| -- Cancellation of registration of GSTIN of deceased |
95
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| Input tax credit in case of switching over from normal scheme to composition levy or in case of goods or services or both becoming exempt |
96
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| Manner of reversal of credit under section 18(4) |
96
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| Transfer of ITC within same State or Union territory |
97
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APPENDIX |
98
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| Clarification in Respect of Transfer of Input Tax Credit in Case of Death of Sole Proprietor -- Regarding [Circular No. 96/15/2019-GST, dt. 28-3-2019] |
98
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| Clarification in Respect of Apportionment of Input Tax Credit (ITC) in Cases of Business Reorganization Under Section 18(3) of CGST Act read with Rule 41(1) of CGST Rules -- Regarding [Circular No. 133/03/2020-GST, dt. 23-03-2020] |
99
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Input Tax Credit Vis-a-Vis Job Work |
104
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| Procedure for removal of inputs or capital goods for job work |
104
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| Principal is allowed to take input tax credit on inputs sent to job-worker |
104
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| Inputs sent for job-work, not received back within prescribed period -- Consequences of |
104
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| Input tax credit on capital goods sent to a job-worker |
105
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| Capital goods -- Meaning of |
105
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| Input tax credit is allowable even on capital goods sent directly to a job worker |
105
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| Capital goods not received back within three years -- Consequences of |
105
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| Conditions and restriction in respect of inputs and capital goods sent to job worker |
105
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| -- Goods to be sent under cover of a challan |
105
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| -- Details required to be contained in challan |
106
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| -- Details of challan to be furnished in FORM GST ITC-04 |
106
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| -- Extension of due date of furnishing Form GST ITC-04 |
106
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Distribution of Input Tax Credit |
107
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| Concept of input service distributor |
107
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| Input service distributor -- Definition |
107
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| Registration of ISD |
108
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| Filing of return by ISD |
108
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| Manner of distribution of credit by ISD |
108
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| Reduction of amount of input tax credit -- Consequences of |
109
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| Furnishing of details of ISD credit note in Form GSTR-6 |
110
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| Conditions to be satisfied for distribution of input tax credit |
110
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| Relevant period -- Definition |
110
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| Recipient of credit -- Defined |
111
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| Turnover -- Defined |
111
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| Details required to be contained in an ISD invoice or an ISD credit note |
111
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| Details required to be contained in a credit or debit note to transfer credit of common input services to Input Service Distributor |
111
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| Manner of recovery of credit distributed in excess |
112
| >> |
| Transitional provisions in respect of distribution of service tax credit |
112
| >> |
| Penalty for distribution of credit wrongly |
112
| >> |
Refund of ITC under Inverted Duty Structure |
113
| >> |
| When is refund of accumulated input tax credit allowable? |
113
| >> |
| What is inverted duty structure? |
113
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| Cases where refund of unutilized input tax credit is not allowable |
113
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| Supplier availing of drawback in respect of State tax can claim refund |
114
| >> |
| Allowability of refund under inverted duty structure in respect of input services and capital goods |
114
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| Service in respect of which refund of unutilised input tax credit is not allowable |
115
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| Goods in respect of which refund of unutilised input tax credit is not allowed |
115
| >> |
| No refund of ITC allowable in respect of invoices not reflected in GSTR-2A |
116
| >> |
| Manner of determining refund under inverted duty structure |
117
| >> |
Refund of ITC in case of Zero Rated Supply |
118
| >> |
| What is zero-rated supply? |
118
| >> |
| Export of Goods -- Meaning |
118
| >> |
| Export of services -- Meaning of |
119
| >> |
| Supply of goods or services to SEZ Developer or SEZ unit |
119
| >> |
| Deemed export |
119
| >> |
| -- Supplies which are regarded as deemed supply |
119
| >> |
| -- Various terms -- Defined |
120
| >> |
| Refund of tax in respect of zero-rated supply |
120
| >> |
| Refund in case of supply to SEZ unit or SEZ developer |
121
| >> |
| -- DTA supplier will file refund claim |
121
| >> |
| -- When is refund claim filed in case of supplies made by DTA to SEZ units |
121
| >> |
| -- Supporting documents required to be filed by DTA supplier |
121
| >> |
| -- Provisional refund may be granted to DTA |
121
| >> |
| -- Application for refund of tax paid on supplies made to a SEZ developer or unit |
121
| >> |
| Refund in case of deemed export |
122
| >> |
| -- Evidences required to be produced for claiming refund |
122
| >> |
| -- Procedure to be followed in case of Deemed Export |
122
| >> |
| -- Relevant date for filing retund claim in case of deemed exports |
123
| >> |
| Calculation of refund of unutilised input tax credit in case of zero-rated supply |
123
| >> |
| -- Where supplier has availed of benefit of deemed export |
124
| >> |
| -- Where taxpayer receives supplies against concessional rate of tax or avails of benefit of Advance Authorisation/EPCG Scheme |
124
| >> |
| -- Tax paid on invoices of earlier tax period to be considered |
125
| >> |
| -- Transitional credit cannot be treated as part of ‘Net ITC’ |
125
| >> |
| -- Refund of unutilized input tax credit of compensation cess is not allowable |
125
| >> |
| No refund of ITC allowable in respect of invoices not reflected in GSTR-2A |
125
| >> |
| Recovery of refund of unutilsed ITC or IGST paid on export of goods |
125
| >> |
| Refund to retail outlets established at departure area of International Airport |
126
| >> |
| Applicability of principle of unjust enrichment |
126
| >> |
| Bar of unjust enrichment not applicable in case of refund of unutilised ITC |
127
| >> |
APPENDIX |
127
| >> |
| Refund of taxes paid on inward supply of indigenous goods by retail outlets established at departure area of the international airport beyond immigration counters when supplied to outgoing international tourist against foreign exchange -- Reg. [Circular |
127
| >> |
Procedures Relating to Refund |
133
| >> |
| New procedure for processing of refund applications |
133
| >> |
| Electronic filing and processing of refund |
134
| >> |
| Manual filing and processing of refund claims upto 25-9-2019 |
134
| >> |
| Procedure for filing application and processing of refund claim upto 25-9-2019 |
135
| >> |
| -- Submission of invoices for processing of claims of refund |
135
| >> |
| -- Re-credit of electronic credit ledger in case of rejection of refund claim |
135
| >> |
| -- Applicablity of restriction contained under rule 96(10) |
136
| >> |
| -- Disbursal of refund amount after sanctioning by proper officer |
136
| >> |
| -- Status of refund claim after issuance of deficiency memo |
136
| >> |
| Time limit for claiming refund |
137
| >> |
| -- Refund of tax, interest or other amount |
137
| >> |
| -- Refund of any balance in electronic cash ledger |
137
| >> |
| -- Claim of refund by specialized agency of United Nations |
137
| >> |
| Relevant date -- Meaning of |
137
| >> |
| Periodicity of refund claim |
138
| >> |
| Manner of filing refund claim |
138
| >> |
| -- Refund relating to balance in electronic cash ledger |
139
| >> |
| -- Refund arising out of deposit of advance tax by a casual taxable person |
139
| >> |
| Assignment of refund applications to concerned authority |
139
| >> |
| Furnishing of returns in Form GSTR-1 and Form GSTR-3B is necessary |
139
| >> |
| Filing of undertaking by applicant |
140
| >> |
| Procedure for acknowledgment of refund application |
140
| >> |
| -- Refund arising from electronic cash ledger |
140
| >> |
| -- Refund, other than from electronic cash ledger |
140
| >> |
| Procedure for issuance of deficiency memo |
141
| >> |
| Scrutiny of refund application |
142
| >> |
| Procedure for rejection of refund claim |
142
| >> |
| -- Issuance of show cause notice |
142
| >> |
| -- Adjudication of show cause notice |
142
| >> |
| -- Extension of time period for passing rejection order for certain period |
143
| >> |
| Refund sanction order shall be issued by single authority only |
143
| >> |
| Disbursement of refund through PFMS |
144
| >> |
| -- Procedure for validation of bank account |
144
| >> |
| -- Rectification of invalidated bank account or addition of new bank account |
144
| >> |
| -- Validation errors occurring after issuance of payment order -- Effect of |
144
| >> |
| -- Selection of bank account at the time of filing refund application |
145
| >> |
| -- Communication of disbursement status |
145
| >> |
| Calculation of interest payable to assessee |
145
| >> |
| Adjustment of refund against outstanding demand |
145
| >> |
| Documents required to be accompanied with refund application |
146
| >> |
| Recovery of refund of unutilsed ITC or IGST paid on export of goods |
147
| >> |
| Documents not required to be enclosed where amount of refund is lower |
148
| >> |
| Cases where declaration or certificate is not required to be furnished |
148
| >> |
| Order of refund and time period for making such order |
149
| >> |
| Grant of provisional refund |
149
| >> |
| Order sanctioning refund |
150
| >> |
Interest, Penalties and Prosecution Vis-a-Vis Input Tax Credit |
152
| >> |
I. INTEREST |
152
| >> |
| Interest for undue or excess claim of ITC or reduction of output tax liability |
152
| >> |
| Undue or excess claim of ITC under section 42(10) |
152
| >> |
| Undue and excess reduction in output tax liability under section 43(10) |
154
| >> |
| Interest for reversal of ITC on account of non-payment of consideration within 180 days |
155
| >> |
II. Penalty |
155
| >> |
| Penalty for issuing invoice or bill without supply of goods or services |
155
| >> |
| Taking or utilising input tax credit without actual receipt of goods or servivces |
156
| >> |
| Taking or distributing input tax credit wrongly |
157
| >> |
| Wrong availment or utilization of input tax credit |
158
| >> |
| General penalty |
158
| >> |
| General disciplines related to penalty |
158
| >> |
| Giving reasonable opportunity of being heard |
159
| >> |
III. Offences and Prosecution |
159
| >> |
| Offences relating to wrong availment or utilization of ITC |
159
| >> |
| Punishments specified under the Act |
159
| >> |
| Minimum term of imprisonment |
160
| >> |
| Applicability of provisions of Code of Criminal Procedure |
160
| >> |
| Cognizable offence -- Meaning and nature |
160
| >> |
| -- Meaning of cognizable offence |
160
| >> |
| -- What offences are cognizable offences |
161
| >> |
| -- No Court can take cognizance of any offence without permission of designated authority |
161
| >> |
| Meaning of non-cognizable offence |
161
| >> |
| Presumption of culpable mental status |
161
| >> |
| Relevancy of statements under certain circumstances |
161
| >> |
| Offences by companies and certain other persons |
162
| >> |
| -- Offence by a company |
162
| >> |
| -- Offence by other persons |
162
| >> |
| -- No punishment in certain cases |
162
| >> |
| Compounding of offences |
162
| >> |
| -- Compounding of offences by Competent Authority |
163
| >> |
| -- No compounding in certain cases |
163
| >> |
| -- Compounding would not affect proceedings under any other law |
163
| >> |
| -- Minimum and maximum amount of compounding amount |
163
| >> |
| -- No further proceedings to be intiated on payment of compounding amount |
164
| >> |
| Procedure for compounding of offences |
164
| >> |
Recovery of ITC Wrongly Availed of or Utilised |
165
| >> |
| Statutory provisions dealing with demand and recovery of tax |
165
| >> |
| Comparative chart showing scheme of provisions under sections 73 and 74 |
166
| >> |
I. DEMAND AND RECOVERY OF TAX UNDER SECTION 73 |
167
| >> |
| Cases when provisions of section 73 be invoked |
167
| >> |
| Service of show cause notice |
167
| >> |
| Mode of service of notice, order, etc. |
167
| >> |
| Time limit for service of show cause notice |
167
| >> |
| Issuance of statement for subsequent period on the same ground |
168
| >> |
| Second show cause notice cannot be issued for same period |
168
| >> |
| Payment of tax before issue of show cause notice -- Effect of |
169
| >> |
| Issuance of show cause notice for recovery of amount falling short |
169
| >> |
| No penalty imposable where tax is paid within 30 days of issuance of show cause notice |
169
| >> |
| Payment of tax would not absolve from prosecution proceeding |
169
| >> |
| Determination of tax, interest and penalty |
170
| >> |
| Time limit for issuing order under section 73(9) |
170
| >> |
| Imposition penalty upon failure to pay self-assessed tax |
170
| >> |
| Conclusion of proceeding in respect of co-noticee |
170
| >> |
II. DEMAND AND RECOVERY OF TAX UNDER SECTION 74 |
170
| >> |
| When can provisions of section 74 be invoked? |
170
| >> |
| Suppression -- Meaning of |
171
| >> |
| Issuance of show cause notice |
171
| >> |
| Time limit for issuance of notice |
171
| >> |
| Issuance of statement for subsequent period on the same ground |
171
| >> |
| Corrigendum to show cause notice -- Validity |
172
| >> |
| Allegation of fraud or wilful-misstatement or suppression of facts to be set out in show cause notice |
172
| >> |
| Department being aware of activity of assessee -- Allegation of fraud, wilful mis-statement is not sustainable |
174
| >> |
| No mala fide intention on part of assessee -- Extended period cannot be invoked |
175
| >> |
| Payment of tax and interest before issue of show cause notice -- Effect of |
176
| >> |
| Issuance of show cause notice for recovery of amount falling short |
177
| >> |
| Payment of tax, interest and 25% of penalty within 30 days of issuance of show cause notice -- Consequences of |
177
| >> |
| Payment of tax would not absolve from prosecution proceeding |
177
| >> |
| Determination of tax, interest and penalty |
177
| >> |
| Time limit for making order under sub-section (10) of section 74 |
178
| >> |
| Tax, interest and 50% of penalty paid within 30 days of issuance of adjudication order -- Consequences of |
178
| >> |
| Conclusion of proceedings in respect of co-noticee |
178
| >> |
III. GENERAL PROVISIONS RELATING TO DETERMINATION OF TAX |
178
| >> |
| Effect of stay of service of notice or issuance of order -- Effect of |
178
| >> |
| Demand of tax for normal limitation period would be sustainable where demand for extended period is quashed |
178
| >> |
| Order required to be issued in pursuance of direction of Tribunal |
179
| >> |
| Opportunity of personal hearing |
179
| >> |
| Adjournment of hearing |
179
| >> |
| Relevant facts and basis of decision to be set out in order |
179
| >> |
| Adjudication order cannot travel beyond show-cause notice |
180
| >> |
| Order passed before the date of furnishing reply to show cause notice |
181
| >> |
| Modification of interest and penalty consequent to modification of demand |
181
| >> |
| Deemed conclusion of adjudication proceeding after specified period |
181
| >> |
| Exclusion of certain period for passing adjudication order |
182
| >> |
| Self-assessed tax is liable to be recovered under section 79 |
182
| >> |
| No penalty imposable under other provisions where penalty is imposed under section 73 or 74 |
182
| >> |
| Tax to be deposited within 90 days |
182
| >> |
| Generation and quoting of DIN |
182
| >> |
| Recovery of Cenvat credit out of proceeding of appeal, review or reference |
183
| >> |
| Recovery of Cenvat credit carried forward wrongly |
183
| >> |
| Recovery of arrears of central excise duty and service tax |
183
| >> |
| Recovery of arrears due to revision of return under existing law |
184
| >> |
| Recovery of interest, penalty and late fee |
184
| >> |
Transitional Credit to Registered Persons |
185
| >> |
| Need and significance of transitional provisions |
185
| >> |
| Carry forward of Cenvat credit by registered person |
185
| >> |
| Persons eligible to carry forward Cenvat credit |
185
| >> |
| Conditions for taking transitional credit |
186
| >> |
| -- Input tax credit should be admissible under GST law |
186
| >> |
| -- All returns under existing law to be furnished |
186
| >> |
| -- Credit should not pertain to exempted goods |
187
| >> |
| -- Registered person does not opt composition scheme |
187
| >> |
| Extent of input tax credit to be carried forward |
187
| >> |
| Procedure to be followed |
187
| >> |
| Revision of return under erstwhile law -- Effect of |
188
| >> |
| -- Where amount is found to be recoverable or any Cenvat credit is found inadmissible |
188
| >> |
| -- Where any amount is found refundable or Cenvat credit is found to be admissible |
189
| >> |
| Taking of unavailed Cenvat credit in respect of capital goods |
189
| >> |
| -- Background of provisions under sub-section (2) of section 140 |
189
| >> |
| -- Unavailed input tax credit -- Meaning of |
189
| >> |
| -- Credit must be admissible as Cenvat credit under the existing law |
189
| >> |
| -- Credit must be admissible as input tax credit under GST regime |
190
| >> |
| -- Provision illustrated |
190
| >> |
| -- Issues from Tweet FAQs |
190
| >> |
| Procedure to be followed |
191
| >> |
| Impact on SSI units |
191
| >> |
| Capital goods purchased before appointed date and received thereafter |
192
| >> |
| Manner of reversal of credit of Additional Duty of Customs in respect of Gold dore bar |
192
| >> |
| Case study : Allowability of Input Tax Credit to registered person |
193
| >> |
| Case study : Capital goods purchased on 30-12-2016 on payment of duty -- 50% Cenvat credit taken in First Year -- Treatment of balance under GST regime |
193
| >> |
| Case study : Capital goods purchased on 30-4-2017 by manufacturer availing SSI exemption -- Allowability of input tax credit under GST |
194
| >> |
| Case study : Manufacturer took registration in April 2017 -- Carry forward of credit as CGST -- Allowability of input tax credit where return for June 2017 is filed |
195
| >> |
| Case study : Unutilized VAT credit for the period 1-4-2017 to 30-6-2017 -- Amount to be carried forward under GST regime |
195
| >> |
| Case study : Invoices issued within 12 months prior to appointed date |
195
| >> |
| Case study : First stage dealer -- Invoices older than 12 months of the appointed day |
196
| >> |
| Case study : Input tax credit to be carried in Electornic Credit Ledger |
196
| >> |
Transitional Credit in Other Cases |
198
| >> |
| Background |
198
| >> |
| Credit of duties and taxes in respect of inputs held in stock |
198
| >> |
| Input tax credit i.r.o. capital goods is not allowable |
199
| >> |
| Meaning of eligible duties |
199
| >> |
| Cess is not covered under eligible duties |
199
| >> |
| Allowability of input tax credit to a service provider in respect of VAT paid inputs |
199
| >> |
| Conditions for taking credit in respect of inputs held in stock |
200
| >> |
| Admissibility of credit of service tax paid on inputs |
200
| >> |
| Registered taxable person is not in possession of an invoice or other document -- Allowability of transitional ITC |
200
| >> |
| Case study : Trader being unregistered in pre-GST regime -- Admissibility of input tax credit under GST regime |
202
| >> |
Concessional Rates of Tax for Certain Taxable Services vis-a-vis Input Tax Credit |
203
| >> |
| Rate of tax for taxable services |
203
| >> |
| Goods includes capital goods |
203
| >> |
| Concessional rate of tax in case of construction services |
204
| >> |
| Concessional rate of tax in case of restaurant and outdoor catering services |
210
| >> |
| Concessional rate of tax in case of passenger transport services |
211
| >> |
| Concessional rate of tax in case of goods transport services |
213
| >> |
| Concessional rate of tax in case of rental services of transport of vehicles |
214
| >> |
| Concessional rate of tax in case of support services of transport |
214
| >> |
| Concessional rate of tax in case of services relating to chit |
215
| >> |
| Concessional rate of tax in case of supply of tour operator services |
216
| >> |
| House-keeping services provided through electronic commerce operator |
216
| >> |
| House-keeping services provided through electronic commerce |
217
| >> |
GST Returns and Input Tax Credit |
218
| >> |
| ITC to be self-assessed in Form GSTR-3B |
218
| >> |
| Table relevant to ITC in Form GSTR-3B |
218
| >> |
| ITC Available (whether in full or part) |
219
| >> |
| -- ITC on import of goods |
219
| >> |
| -- ITC on import of services |
219
| >> |
| -- ITC on inward supplies liable to reverse charge |
219
| >> |
| -- Inward supplies from ISD |
219
| >> |
| -- All other ITC |
219
| >> |
| ITC Reversed |
220
| >> |
| -- ITC reversed as per rule 42 |
220
| >> |
| -- ITC reversed as per rule 43 |
220
| >> |
| -- ITC reversed (other) |
220
| >> |
| Ineligible ITC |
220
| >> |
| -- As per section 17(5) |
220
| >> |
| -- Other ineligible credit |
222
| >> |
| Ascertaining details of inward supply and input tax credit in GSTR-2A |
222
| >> |
| Generation of auto-drafted statement in Form GSTR-2B |
223
| >> |
| Making available statement in Form GSTR-2B to purchaser |
224
| >> |
| ITC vis-a-vis annual return |
224
| >> |
Furnishing ITC Details in Annual Return |
225
| >> |
| ITC related information in Form GSTR-9 |
225
| >> |
I. Furnishing of details in Table 6 |
225
| >> |
| Relevant text of Table 6 of Part III of Form GSTR-9 |
225
| >> |
| Bifurcation of ITC is to be provided by taxpayer |
226
| >> |
| ITC claimed in Financial Year 2018-19 is not be reported |
226
| >> |
| Purchase details not required to be furnished |
226
| >> |
| Source of information to be furnished in Part III of GSTR-9B |
227
| >> |
| Table 6A : Total amount of input tax credit availed through FORM GSTR-3B [Sum total of Table 4A of FORM GSTR-3B] |
227
| >> |
| -- As per Instructions to Form GSTR-9 |
227
| >> |
| -- Mode of furnshing details |
227
| >> |
| -- Interlink with Form GSTR-3B |
228
| >> |
| Table 6B : Inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) |
228
| >> |
| -- As per Instructions to Form GSTR-9 |
228
| >> |
| -- Mode of furnishing details |
228
| >> |
| -- Interlink with Form GSTR-1 |
228
| >> |
| -- Details to be included |
228
| >> |
| -- Details not to be included |
229
| >> |
| Table 6C : Inward supplies received from unregistered persons liable to reverse charge (other than B above) on which tax is paid & ITC availed |
229
| >> |
| -- As per Instructions to GSTR-9 |
229
| >> |
| -- Mode of furnishing details |
229
| >> |
| -- Interlink with GSTR-3B |
229
| >> |
| -- Details not to be included |
229
| >> |
| -- Levy of tax on reverse charge basis under section 9(4) of the CGST Act and section 5(4) of the IGST Act -- Legal background |
230
| >> |
| Table 6D : Inward supplies received from registered persons liable to reverse charge (other than B above) on which tax is paid and ITC availed of |
230
| >> |
| -- As per Instructions appended to GSTR-9 |
231
| >> |
| -- Mode of furnishing details |
231
| >> |
| -- Interlink with GSTR-3B |
231
| >> |
| -- Details not to be included |
231
| >> |
| -- Levy of tax on reverse charge basis under section 9(3) of CGST Act and section 5(3) of the IGST Act -- Legal background |
231
| >> |
| Table 6E : Import of goods (including supplies from SEZs) |
237
| >> |
| -- As per Instructions appended to GSTR-9 |
237
| >> |
| -- Mode of furnishing details |
237
| >> |
| -- Interlinke with GSTR-3B |
238
| >> |
| -- Details to be included |
238
| >> |
| Table 6F : Import of services (excluding inward supplies from SEZs) |
238
| >> |
| -- As per Instructions appended to GSTR-9 |
238
| >> |
| -- Mode of furnishing detail |
238
| >> |
| -- Interlink with Form GSTR-3B |
238
| >> |
| -- Details not to be included |
238
| >> |
| Table 6G : Input Tax credit received from ISD |
238
| >> |
| -- As per Instructions appended to GSTR-9 |
238
| >> |
| -- Mode of furnishing details |
238
| >> |
| -- Interlink with Form GSTR-3B |
238
| >> |
| -- Concept and methology of ISD |
239
| >> |
| Table 6H : Amount of ITC reclaimed (other than B above) under the provisions of the Act |
239
| >> |
| -- As per Instrutions appended to GSTR-9 |
239
| >> |
| -- Mode of furnishing details |
239
| >> |
| -- Interlink with GSTR-3B |
239
| >> |
| -- Conditions for taking Input Tax Credit |
239
| >> |
| -- Reversal of input tax credit upon non-payment of value of supply within 180 days |
240
| >> |
| -- Reclaim of input tax credit |
240
| >> |
| -- Cases, where reversal of ITC is not required |
240
| >> |
| -- Value of supplies deemed to be paid |
240
| >> |
| Table 6I : Sub-total (B to H above) |
240
| >> |
| Table 6J : Difference (I – A above) |
241
| >> |
| -- As per instructions appended to Form GSTR-9 |
241
| >> |
| -- Details to be included |
241
| >> |
| Table 6K : Transition Credit through TRAN-1 (including revisions, if any) |
241
| >> |
| -- As per Instructions appended to Form GSTR-9 |
241
| >> |
| -- Mode of furnishing details |
241
| >> |
| Table 6L : Transition Credit through TRAN-II |
241
| >> |
| -- As per Instructions appended to GSTR-9 |
241
| >> |
| -- Mode of furnishing details |
241
| >> |
| -- As per FAQs issued by ICAI |
241
| >> |
| Table 6M : Any other ITC availed but not specified above |
241
| >> |
| -- As per Instructions appened to GSTR-9 |
241
| >> |
| -- Persons required to furnish Form ITC-01 |
242
| >> |
| -- Persons required to furnish Form ITC-02 |
242
| >> |
| Table 6N : Sub-total (K to M above) |
243
| >> |
| Table 6-O : Total ITC availed of (I + N above) |
243
| >> |
II. Furnishing details in Table 7 |
243
| >> |
| Information required to be furnished in Table 7 of Part III of Form GSTR-9 |
243
| >> |
| As per Instructions appended to GSTR-9 |
243
| >> |
| Table 7A : Reversal of ITC as per rule 37 |
244
| >> |
| -- Statutory background |
244
| >> |
| -- Text of rule 37 |
244
| >> |
| Table 7B : Reversal of ITC as per Rule 39 |
245
| >> |
| -- Statutory background |
245
| >> |
| -- Relevant text of rule 39 |
245
| >> |
| Table 7C : Reversal as per rule 42 |
246
| >> |
| -- Text of sub-section (1) of section 17 |
246
| >> |
| -- Text of sub-section (2) of section 17 |
246
| >> |
| -- Text of rule 42 |
246
| >> |
| Table 7D : Reversal of ITC as per rule 43 |
248
| >> |
| -- Text of sub-sections (1) and (2) of section 17 |
248
| >> |
| -- Text of rule 43 |
248
| >> |
| Table 7E : Reversal of Input tax Credit as per section 17(5) |
250
| >> |
| -- ITC ineligible under section 17(5) |
250
| >> |
| -- Details to be incuded |
250
| >> |
| -- Mode of furnishing details |
251
| >> |
| -- Interlink with GSTR-3B |
251
| >> |
| Table 7F : Reversal of TRAN-I Credit |
251
| >> |
| -- Details to be included |
251
| >> |
| -- Mode of furnishing information |
251
| >> |
| -- Interlink with GSTR-3B |
251
| >> |
| Table 7G : Reversal of TRAN-II Credit |
251
| >> |
| -- Details to be included |
251
| >> |
| -- Mode of furnishing details |
251
| >> |
| -- Interlink with GSTR-3B |
252
| >> |
| Table 7H : Other reversals |
252
| >> |
| -- Details to be included |
252
| >> |
| -- Mode of furnishing detail |
252
| >> |
| -- Interlink with GSTR-3B |
252
| >> |
| -- Interlink with ITC-03 |
252
| >> |
| Table 7-I : Total ITC Reversed (Sum of A to H above) |
252
| >> |
| Table 7J : Net ITC Available for Utilization (60–71) |
253
| >> |
III. Furnishing of details in Table 8 |
253
| >> |
| Information required to be furnished in Table 8 of Part III of Form GSTR-9 |
253
| >> |
| Table 8A of GSTR-9 |
253
| >> |
| -- As per Instructions appended to GSTR-9 |
253
| >> |
| -- Mode of furnishing details |
254
| >> |
| Table 8B : ITC as per sum total of 6B and 6H above |
254
| >> |
| -- Details to be furnished |
254
| >> |
| -- Mode of furnishing details |
254
| >> |
| Table 8C : ITC availed during April to Septmber, 2018 |
254
| >> |
| -- Details to be included |
254
| >> |
| -- Mode of furnishing details |
254
| >> |
| -- As per Instructions appended to Form GSTR-9 |
254
| >> |
| -- Interlink with GSTR-3B |
254
| >> |
| Table 8D : Difference [A – (B +C)] |
254
| >> |
| -- Details to be included |
254
| >> |
| -- Mode of furnishin Details |
255
| >> |
| -- As per instructions appended to Form GSTR-9 |
255
| >> |
| Table 8E : ITC available but not availed of |
255
| >> |
| -- Details to be included |
255
| >> |
| -- Mode of furnishing details |
255
| >> |
| -- As per instructions appended to Form GSTR-9 |
255
| >> |
| Table 8F : ITC available but ineligible (out of D) |
255
| >> |
| -- Details to be included |
255
| >> |
| -- Mode of furnishing details |
255
| >> |
| -- As per instructions appended to Form GSTR-9 |
255
| >> |
| Table 8G : IGST paid on import of goods (including supplies from SEZ) |
255
| >> |
| -- As per instructions appended to GSTR-9 |
255
| >> |
| -- Mode of furnishing details |
255
| >> |
| Table 8H : IGST credit availed on import of goods (as per 6(E) above) |
256
| >> |
| -- Details to be included |
256
| >> |
| -- Mode of furnishing details |
256
| >> |
| -- As per instructions appended to GSTR-9 |
256
| >> |
| Table 8I : Sub-total (B to H above) |
256
| >> |
| -- Details to be included |
256
| >> |
| -- Mode of furnishing details |
256
| >> |
| Table 8J : ITC available but not availed of on import of goods (Equal to I) |
256
| >> |
| -- Detals to be included |
256
| >> |
| -- Mode of furnishing details |
256
| >> |
| Table 8K : Total ITC to be lapsed in current financial year (E + F + J) |
256
| >> |
| -- Details to be included |
256
| >> |
| -- Mode of furnishng details |
256
| >> |
| -- As per instructions appended to GSTR-9 |
256
| >> |
APPENDIX |
257
| >> |
| Central Goods and Services Tax Act, 2017 (Relevant Text) |
257
| >> |
| The Integrated Goods and Services Tax Act, 2017 (Relevant Extracts) |
289
| >> |
| The Union Territory Goods and Services Tax Act, 2017 (Relevnat Extracts) |
290
| >> |
| The Goods and Services Tax Rules, 2017 (Relevant Extracts) |
294
| >> |
| Frequently Asked Questions on GST (Relevant Extracts) |
327
| >> |
| Form GST ITC–01 -- Declaration for claim of input tax credit under sub-section (1) of section 18 |
341
| >> |
| Form GST ITC-02 -- Declaration for transfer of ITC in case of sale, merger, demerger, amalgamation, lease or transfer of a business under sub-section (3) of section 18 |
343
| >> |
| Form GST ITC-02A -- Declaration for Transfer of ITC Pursuant to Registration under Sub-section (2) of section 25 |
344
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| Form GST ITC–03 -- Declaration for intimation of ITC reversal/payment of tax on inputs held in stock, inputs contained in semi-finished and finished goods held in stock and capital goods under sub-section (4) of section 18 |
345
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| Form GST ITC-04 -- Details of goods/capital goods sent to job worker and received back |
346
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