Input Tax Credit rules clarified for deemed exports, employer perquisites, and permitted uses of electronic GST ledgers. Tax paid on deemed export supplies, made available as ITC for enabling refund claims on the portal, is not ITC under Chapter V and therefore is not subject to section 17(5) and must be excluded from 'Net ITC' for computation of unutilised ITC refunds. The proviso added to clause (b) of section 17(5) applies to the entire clause (b). 'Leasing' in that clause is limited to motor vehicles, vessels and aircraft. Perquisites under employment contracts are not taxable supplies. Electronic credit ledger funds may only discharge output tax (not reverse charge or other liabilities); cash ledger may meet tax, interest, penalty or fees.
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Provisions expressly mentioned in the judgment/order text.
Input Tax Credit rules clarified for deemed exports, employer perquisites, and permitted uses of electronic GST ledgers.
Tax paid on deemed export supplies, made available as ITC for enabling refund claims on the portal, is not ITC under Chapter V and therefore is not subject to section 17(5) and must be excluded from "Net ITC" for computation of unutilised ITC refunds. The proviso added to clause (b) of section 17(5) applies to the entire clause (b). "Leasing" in that clause is limited to motor vehicles, vessels and aircraft. Perquisites under employment contracts are not taxable supplies. Electronic credit ledger funds may only discharge output tax (not reverse charge or other liabilities); cash ledger may meet tax, interest, penalty or fees.
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