Service tax on Telecom remained suspended for about a year or so as a result of a SC interim order which was later on restored.Howrever the Telecom sector did not pay any tax for this period.
My query is whether they are entitled for an ITC for this period whence they paid zero tax
Can Input Tax Credit be carried forward during service tax suspension in telecom sector? Clarification needed per CGST Act. A discussion on the forum revolves around the admissibility of Input Tax Credit (ITC) for the telecom sector during a period when service tax was suspended by a Supreme Court interim order. The query seeks clarity on whether ITC can be carried forward and adjusted against future outputs despite no tax being paid during the suspension. The response highlights that payment of service tax is a prerequisite for availing Cenvat Credit, as per the CGST Act, and emphasizes the need for more details and the Supreme Court order to provide a definitive opinion. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
