Input tax credit treatment clarified: ITC for deemed export refunds excluded from Section 17 and Net ITC calculation. Tax paid on supplies regarded as deemed exports has been made available as ITC solely to facilitate refund claims but is not ITC under Chapter V, thus not subject to Section 17 restrictions nor included in Net ITC for refund computations. The proviso to clause (b)(iii) of subsection (5) of Section 17 applies to the whole of clause (b). 'Leasing' in the exclusion is limited to motor vehicles, vessels and aircraft. Perquisites under employment contracts are not taxable supplies. Electronic credit ledger may be used only for output tax (excluding reverse charge); electronic cash ledger covers tax, interest, penalties and other liabilities.
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Input tax credit treatment clarified: ITC for deemed export refunds excluded from Section 17 and Net ITC calculation.
Tax paid on supplies regarded as deemed exports has been made available as ITC solely to facilitate refund claims but is not ITC under Chapter V, thus not subject to Section 17 restrictions nor included in Net ITC for refund computations. The proviso to clause (b)(iii) of subsection (5) of Section 17 applies to the whole of clause (b). "Leasing" in the exclusion is limited to motor vehicles, vessels and aircraft. Perquisites under employment contracts are not taxable supplies. Electronic credit ledger may be used only for output tax (excluding reverse charge); electronic cash ledger covers tax, interest, penalties and other liabilities.
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