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

Input tax credit option requires prior intimation; absence converts supplies to reduced rate without ITC.
Availability of Input Tax Credit depends on the taxation route chosen: miscellaneous construction entries allowing tax payment with ITC require no prior intimation; however, ongoing residential projects that wished to continue paying tax with ITC had to submit a prescribed annexure within the transitional window-failure to submit converts receipts to the reduced tax route without entitlement to ITC, exposing a supplier who claimed ITC without the required intimation to departmental challenge.