Book Description

This book is a practical guide in understanding the issues raised while replying to the Notice on Input Tax Credit (ITC). It provides a unique step-by-step understanding of the issues on each subject's particular set of facts. This book is divided into two parts, which are as follows: • Division One – Narrates the Input Tax Credit Legislative Background (in-brief) with reference to: o Relevant Section(s) o Relevant Rules o Application Forms • Division Two – Compiles various issues which may form part of the draft response to the notices being received This book is essential for professionals navigating ITC regulations and litigation, offering foundational knowledge and actionable solutions to enhance compliance and effectively manage disputes under GST. The Present Publication is the 2nd Edition | 2024 and has been updated till 31st March 2024. This book is authored by CA. (Dr) Arpit Haldia, with the following noteworthy features: • [Comprehensive Solutions to Deal with Department's Objections/Notices] on availment of Input Tax Credit • [Coverage of Solutions] include: o Issue Involved o Grounds of Submission o Specimen Pleading o Supporting Case Laws • [Coverage of Issues] include: o Mismatch in ITC Claimed in GSTR-3B and reflected in GSTR-2A o Non-Compliance of Rule 36(4) for ITC Availed o ITC Availed and GSTR-1 filed by Supplier after Due Date of Filing of GSTR-1 o ITC Claimed in Violation of Sections 16(2)(c) and 16(4) o Blocking of ITC o ITC on Immovable Property • [Coverage of Case Laws] from the following: o Supreme Court o High Court of the Pre & Post GST Regime o CESTAT o AAR/AAAR • [Explanation in Lucid Language] along with comprehensive coverage, detailed analysis and relevant illustrations The detailed contents of the book are as follows: • Law Relating to Input Tax Credit o Introduction to Input Tax Credit in GST – Definitions o Eligibility to Claim ITC o Eligibility to Claim or Liability to Reserve Input Tax Credit in Special Circumstances o Reversal of Input Tax Credit for Input/Input Services/Capital Goods being used for making Taxable/Exempt supply o Blocked Credit in GST • ITC Litigation – Department's Objections and Responses o Mismatch in ITC claimed in GSTR-3B and reflected in GSTR-2A o Non-Compliance of Rule 36(4) of ITC availed o ITC availed and GSTR-1 filed by the supplier after the due date of filing of GSTR-1 o ITC claimed in violation of section 16(2)(c) o ITC claimed beyond the Time limit provided in Provisions of section 16(4) o ITC denied on account of reporting of B2B Supplies in B2C by supplier o Non-Payment of Consideration due to Retention of Supplier Money o Preliminary reply for seeking relied-upon documents in cases wherein it has been alleged that there was no actual movement of goods o Preliminary reply in case of denial of ITC on cancellation of Registration from retrospective date o Claiming of ITC in incorrect Head o Tax not paid in RCM o Negative Blocking of ITC Ledger o Blocking of ITC without giving Reasons o Blocking of ITC-Non-payment within 180 Days o Blocking of ITC beyond one year o Blocking of ITC for ITC Fraudulently availed o ITC on Foundation of Plant and Machinery o ITC on Construction of Property for Rental Purposes o Scope of the term Plant o ITC on Captive Consumption of Solar Power o Availability of Input Tax Credit on Lifts o ITC on Lease Rental o ITC in the case of Movable Furniture o Meaning of Factory o ITC in the case of Boundary Wall and Plant Roads o Availability of ITC on Pipeline laid outside the Factory for transportation of water o ITC to Housing Society on Repair and Maintenance o ITC in cases of Railway Sidings o ITC in case of Repairs and maintenance o ITC in Pre-Construction Period o ITC on further supply of Motor Vehicle o ITC on Test Drive Vehicle o ITC in the case of vessels being used for the Transportation of Goods o ITC in case of Hiring of Vehicle for Transportation of Employees o ITC on Renting of Bus Used for Transportation of Passengers o ITC in case of Mixed Supply o ITC in case of issuance of invoice post the date of time of supply o No one-to-one correlation is required for the claim of ITC o Value of Assets for Rule 41A o ITC in the case of Co-operative Society/Financial Institution o Can discount be considered as a mode of Payment for Rule 37A o ITC in case of Warranty o ITC on CSR Expenses o ITC on Vouchers o Reversal of ITC in Case of Normal Loss o ITC on Holding of Conference o ITC of Brokerage or other ancillary supplies in case renting of Immovable Property o ITC in case of Products given as Brand Reminders o ITC on goods given on achievement of Targets o ITC on Services of Works Contractor by a person engaged in other service o ITC on Canteen Facilities o Denial of Refund in case of availment of Higher Drawback o No ITC to be reversed on Commercial Credit Notes o Seeking Relied Upon Documents in case of allegation of ITC claimed in fake transactions o Availability of Input Tax Credit on Shed in the Factory o Reversal of Input Tax Credit on sale of Duty Credit Scrips o ITC on Purchase of JCB before 1st February 2019