INPUT Credit

[Arjun Gopalakrishna]

INPUT CREDIT OF GST COLLECTED BY GOVERNMENT BODY ON FINES AND PENALTIES LEVIES FOR DELAY IN SUBMISSION OF FORMS.

IS THERE ANY RESTRICTION FOR CLAIMING GST INPUT IN THIS CASE

AI Summary

Debate on GST Input Credit Eligibility for Penalties: Sections 16, 17, and 18 Discussed, Consensus Against Credit Claims A discussion on a forum addresses whether GST input credit can be claimed on penalties levied by government bodies for late submission of forms. One participant argues that input tax credit (ITC) on such penalties is not allowed, as penalties do not qualify as being 'in the business or furtherance of business.' Another participant contends that there are no explicit restrictions under sections 16, 17, and 18 of the GST Act. However, other contributors support the view that penalties are not part of any supply and thus do not qualify for ITC. The consensus leans towards penalties not being eligible for input credit.