Removal of refund restriction on accumulated input tax credit: lapsing rules and calculation method clarified for affected supplies. Amendment removes the refund restriction for accumulated input tax credit on specified fabrics for supplies received on or after 1 August 2018, and provides that accumulated ITC on inputs for purchases up to 31 July 2018 which remained unutilised after payment of GST for July 2018 shall lapse. The provision applies only to ITC on inputs arising from an inverted duty structure, excludes ITC on input services and capital goods and excludes zero rated supplies; the amount to lapse is determined by applying the prescribed inverted duty computation. Taxpayers must self assess and disclose the lapsed amount in their August return.
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Provisions expressly mentioned in the judgment/order text.
Removal of refund restriction on accumulated input tax credit: lapsing rules and calculation method clarified for affected supplies.
Amendment removes the refund restriction for accumulated input tax credit on specified fabrics for supplies received on or after 1 August 2018, and provides that accumulated ITC on inputs for purchases up to 31 July 2018 which remained unutilised after payment of GST for July 2018 shall lapse. The provision applies only to ITC on inputs arising from an inverted duty structure, excludes ITC on input services and capital goods and excludes zero rated supplies; the amount to lapse is determined by applying the prescribed inverted duty computation. Taxpayers must self assess and disclose the lapsed amount in their August return.
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