Input tax credit restriction where supplier charges higher state tax, limiting recoverable credit on same-line input services. The notification limits input tax credit where a supplier of input service in the same line of business charges State tax at a higher rate than the recipient: credit is restricted to the amount corresponding to the recipient's rate on the input service and excess tax charged by the supplier is not eligible. Illustrations clarify application to a transport service chain. The notification also substitutes and omits specified schedule entries and removes certain entries from the Annexure Scheme of Classification of Services, with a stated commencement date in October 2023.
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Provisions expressly mentioned in the judgment/order text.
Input tax credit restriction where supplier charges higher state tax, limiting recoverable credit on same-line input services.
The notification limits input tax credit where a supplier of input service in the same line of business charges State tax at a higher rate than the recipient: credit is restricted to the amount corresponding to the recipient's rate on the input service and excess tax charged by the supplier is not eligible. Illustrations clarify application to a transport service chain. The notification also substitutes and omits specified schedule entries and removes certain entries from the Annexure Scheme of Classification of Services, with a stated commencement date in October 2023.
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