Intimation of tax ascertained as being payable under Section 73(5)/74(5)

[Santhoshkumar Thangavel]

We have received notice from GST stating we have claimed ineligible ITC. But the ITC claimed is for capital goods business purpose ( Buying commerical vehicle for Goods Transport ( GTA Service) ). Along with interest for 3 years. Also Penalty of 10% for the Excess ITC. Not sure what to do now.

AI Summary

GST Notice Challenges Input Tax Credit for Commercial Transport Vehicles: Detailed Response Strategy Required A business received a GST notice challenging input tax credit (ITC) claimed for commercial vehicles used in goods transport services. The notice includes interest for three years and a 10% penalty for excess ITC. The recommended response involves verifying ITC eligibility, preparing a detailed reply with supporting documentation, explaining vehicle usage for taxable services, and requesting a review of interest and penalty calculations.