Input tax credit clarifications: ITC for deemed export refunds excluded from availability rules and net ITC computation. Tax paid on deemed export supplies was made available as ITC solely to enable online refund claims; such ITC is not ITC under Chapter V, is not subject to blocked credit provisions, and is excluded from 'Net ITC' for refund computations. The proviso allowing credit where an employer is legally obliged to provide goods or services applies to the entire blocked credit clause, and the leasing restriction is limited to motor vehicles, vessels and aircraft. Perquisites under employment contracts are not taxable supplies. Electronic credit ledger funds may be used only for output tax (excluding reverse charge), not for interest, penalties, fees or erroneous cash refunds.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input tax credit clarifications: ITC for deemed export refunds excluded from availability rules and net ITC computation.
Tax paid on deemed export supplies was made available as ITC solely to enable online refund claims; such ITC is not ITC under Chapter V, is not subject to blocked credit provisions, and is excluded from "Net ITC" for refund computations. The proviso allowing credit where an employer is legally obliged to provide goods or services applies to the entire blocked credit clause, and the leasing restriction is limited to motor vehicles, vessels and aircraft. Perquisites under employment contracts are not taxable supplies. Electronic credit ledger funds may be used only for output tax (excluding reverse charge), not for interest, penalties, fees or erroneous cash refunds.
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