Lapsing of Input Tax Credit on fabrics: accumulated input credit on specified inputs will lapse unless utilized, with reporting required. Accumulated input tax credit on specified fabrics received on or before 31 July 2018 shall lapse to the extent unutilised after payment of GST for July 2018; the change applies prospectively to supplies received on or after 1 August 2018. The lapsing applies only to ITC on inputs arising from inverted duty structure and excludes ITC on input services, capital goods and zero rated supplies. The amount to lapse is computed using the prescribed formula for inverted duty refunds, allowing exclusion for inputs in closing stock, and must be self-assessed and reported in the taxpayer's return for August 2018 with supporting calculations retained for verification.
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Provisions expressly mentioned in the judgment/order text.
Lapsing of Input Tax Credit on fabrics: accumulated input credit on specified inputs will lapse unless utilized, with reporting required.
Accumulated input tax credit on specified fabrics received on or before 31 July 2018 shall lapse to the extent unutilised after payment of GST for July 2018; the change applies prospectively to supplies received on or after 1 August 2018. The lapsing applies only to ITC on inputs arising from inverted duty structure and excludes ITC on input services, capital goods and zero rated supplies. The amount to lapse is computed using the prescribed formula for inverted duty refunds, allowing exclusion for inputs in closing stock, and must be self-assessed and reported in the taxpayer's return for August 2018 with supporting calculations retained for verification.
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