Input tax credit limitation restricts credit to the prescribed state tax rate where supplier charges a higher rate. Amendment imposes a limitation on input tax credit for input services in the same line of business: where a supplier charges state tax at a rate higher than the prescribed lower rate, the recipient may claim input tax credit only to the extent of tax paid or payable at that prescribed lower rate; an illustrative motor cab example demonstrates application. The amendment also substitutes wording and omits specified items in the Table and removes two serial entries from the Annexure: Scheme of Classification of Services, with the changes effective from the stated commencement date.
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Input tax credit limitation restricts credit to the prescribed state tax rate where supplier charges a higher rate.
Amendment imposes a limitation on input tax credit for input services in the same line of business: where a supplier charges state tax at a rate higher than the prescribed lower rate, the recipient may claim input tax credit only to the extent of tax paid or payable at that prescribed lower rate; an illustrative motor cab example demonstrates application. The amendment also substitutes wording and omits specified items in the Table and removes two serial entries from the Annexure: Scheme of Classification of Services, with the changes effective from the stated commencement date.
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