Input tax credit limitation: caps recoverable credit on same line input services to tax paid at the specified lower rate, with classification amendments. Where a supplier of input service in the same line of business charges state tax at a rate higher than the rate charged on the outward supply, input tax credit on that input service is limited to tax paid or payable at the lower rate applicable to the outward supply; excess credit shall not be taken. The notification also substitutes wording in a licensing-related entry, omits a listed item, and removes two entries from the Services Classification Annexure, with effect from the twentieth day of October, 2023.
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Provisions expressly mentioned in the judgment/order text.
Input tax credit limitation: caps recoverable credit on same line input services to tax paid at the specified lower rate, with classification amendments.
Where a supplier of input service in the same line of business charges state tax at a rate higher than the rate charged on the outward supply, input tax credit on that input service is limited to tax paid or payable at the lower rate applicable to the outward supply; excess credit shall not be taken. The notification also substitutes wording in a licensing-related entry, omits a listed item, and removes two entries from the Services Classification Annexure, with effect from the twentieth day of October, 2023.
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