Input tax credit clarified: ITC for deemed export refunds is not standard ITC and excluded from net ITC. ITC of tax paid on supplies regarded as deemed exports is provided to recipients solely to facilitate refund claims and is not ITC under Chapter V; consequently it is not subject to section 17 restrictions and is excluded from 'Net ITC' for computing refund of unutilised ITC. The proviso to section 17(5)(b) applies to the whole clause (b); 'leasing' in section 17(5)(b)(i) refers only to motor vehicles, vessels and aircraft. Employer perquisites under contract are not supplies. Electronic credit ledger funds may be used for output tax but not reverse charge or other non tax liabilities; cash ledger may meet tax, interest, penalty and fees.
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Input tax credit clarified: ITC for deemed export refunds is not standard ITC and excluded from net ITC.
ITC of tax paid on supplies regarded as deemed exports is provided to recipients solely to facilitate refund claims and is not ITC under Chapter V; consequently it is not subject to section 17 restrictions and is excluded from "Net ITC" for computing refund of unutilised ITC. The proviso to section 17(5)(b) applies to the whole clause (b); "leasing" in section 17(5)(b)(i) refers only to motor vehicles, vessels and aircraft. Employer perquisites under contract are not supplies. Electronic credit ledger funds may be used for output tax but not reverse charge or other non tax liabilities; cash ledger may meet tax, interest, penalty and fees.
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