Tag: Input Tax Credit

#GSTCase-82-Input Tax Credit on construction of Sheds in factory premises not allowed and blocked by virtue of provisions of Section 17(5)(c) and (d) of CGST Act, 2017

Maruti Ispat & Energy (P.) Ltd. 99 taxmann.com 103 (AAR - ANDHRA PRADESH) 1. Query: Whether applicant is eligible to take GST input on Goods and Services used for installation (Foundation) and protection (by creating sheds) of plant and machinery?  2. Facts Applicant is a private limited company, and manufacturers of steel and generation of power. Applicant submitted that they had DRI (direct reduced ...

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#GSTCase-53-Blocked Input Tax Credit U/Sec 17(5) read with Section 16(1) of CGST Act, 2017: An issue to have wider ramifications in Future

Nipha Exports (P.) Ltd. 102 taxmann.com 449 (AAR-WEST BENGAL) 1. Query: Whether input tax credit is admissible on ambulances purchased for the benefit of the employees under legal requirement of the Factories Act, 1948. 2. Facts: Applicant has factories in Howrah and Hooghly for manufacturing agricultural machinery and has purchased an ambulance for the benefit of the employees, as required under Section 45(4) of ...

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#GSTCase-52- Warehouse being constructed USING Pre-Fabricated Technology is an immovable property, and thus ITC is not admissible on inward supplies for its construction by Virtue of Section 17(5) of CGST Act, 2017

Tewari Warehousing Co. (P.) Ltd 102 taxmann.com 295 (AAR-WEST BENGAL) 1. Query: Whether Input Tax Credit is allowed for Construction of Warehouse using pre-fabricated technology? 2. Facts: Applicant is constructing warehouse on a piece of land, taken on lease from Kolkata Port Trust for a period of thirty years for the purpose of building a storage facility.  The property under construction 'Pre- fabricated Warehousing ...

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Rule 42 and Rule 43 of CGST Rules, 2017: Denying eligible Input Tax Credit to the Taxpayers

At the outset and before moving to specific areas which requires reconsideration under Rule 42 and Rule 43, it would be apt to provide that entire scheme of reversal under Rule 42 and Rule 43 should be looked into and it’s a very subjective scheme with such gaps wherein a taxpayer would not be able to comply with the provisions either in entirety or without ...

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Gifts and GST:-Part –I-Meaning of Gift

Before moving on to the statutory provisions, let’s try to understand the meaning of Gift and essential ingredients of Gift. Although the term” Gift” has been used frequently in the CGST Act, 2017, however it has not been defined under the law. If a word has not been defined and it’s of day to day use, then interpretation of the word should be in its ...

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Input Tax Credit of GST paid on motor vehicle not allowed: Is it so

Non-availability of Input Tax Credit on Motor Vehicle and Conveyance has been a serious matter of debate since GST Law has taken shape. Twitter handle of government is flooded with queries whether Input Tax Credit would be available on motor vehicle and conveyance. Let’s first take an example and understand the situation and why there is so much grievance: Vinod is a solely engaged in ...

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Need to Rationalize provisions of Input Tax Credit under the Revised Model GST Law….

Introduction 1. This article analyses and highlights certain provisions under the Input Tax Credit, which require reconsideration under GST. These provisions do not take forward basic theme of GST, i.e., seamless flow of credit between the businesses until the goods or services reach the final consumer. 2. Denial of Input Tax Credit of the GST Paid on Construction of Factory Building 2.1 Section 17(4) (c) ...

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