Input tax credit conditions remain constitutionally valid, with eligible recipient claims considered under GST circulars and retrospective filing dead...
Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
Exempt-income expenditure disallowance is confined to investments that actually generated exempt income, while supported business expenses remain dedu...
The petitioner challenged the levy of interest and penalty for wrongly availing and utilizing Input Tax Credit (ITC). The court held that unless ITC is wrongfully availed and utilized, interest cannot be levied u/s 50(3) of the GST Act, as amended retrospectively by the Finance Act 2022. The petitioner had debited its credit ledger for the wrongly availed ITC but did not utilize it. The court observed that payment of interest and penalty can only be made by debiting the electronic cash ledger, not the credit ledger, as per Sections 49(4), 50(1) proviso, and Rules 86 and 87. Since the petitioner had not utilized the wrongly availed ITC, the demand for interest and penalty was quashed, and the orders passed by the authorities were set aside.
The petitioner challenged the levy of interest and penalty for wrongly availing and utilizing Input Tax Credit (ITC). The court held that unless ITC is wrongfully availed and utilized, interest cannot be levied u/s 50(3) of the GST Act, as amended retrospectively by the Finance Act 2022. The petitioner had debited its credit ledger for the wrongly availed ITC but did not utilize it. The court observed that payment of interest and penalty can only be made by debiting the electronic cash ledger, not the credit ledger, as per Sections 49(4), 50(1) proviso, and Rules 86 and 87. Since the petitioner had not utilized the wrongly availed ITC, the demand for interest and penalty was quashed, and the orders passed by the authorities were set aside.
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