Input tax credit

[Bharat Cholleti]

Dear sir,

Is there any requirement of prior intimation to the department under the Act to avail the Input tax credit in construction business, where in appellant paying GST @18% and taking the ITC paid on inputs. Department person is telling to issue SCN( tax+interest+penalty) that without prior intimation availed ITC. But to my knowledge there is no such prior intimation to the department of any business in availing the ITC, please advise, thanks in advance.

AI Summary

Clarification on Input Tax Credit: No Prior Intimation Needed Except for Ongoing Projects as of April 1, 2019, Under GST. A participant in a discussion forum raised a query about the necessity of prior intimation to avail Input Tax Credit (ITC) in the construction business under the Goods and Services Tax (GST) framework. A department official suggested issuing a Show Cause Notice for availing ITC without prior intimation. Respondents clarified that no prior intimation is required under certain provisions, but for ongoing projects as of April 1, 2019, an intimation was needed to continue paying 18% GST with ITC. The original poster acknowledged understanding that without this intimation, a 5% GST rate applies without ITC.