Input tax credit restriction: credit limited to lower notified state tax rate when same-line supplier charges higher rate. The notification inserts a proviso limiting input tax credit for input services in the same line of business to the tax amount corresponding to the lower notified state rate where an upstream supplier charges a higher rate, illustrated by a motor cab transport example; it also amends wording and omits certain classification entries in the rate schedule and Annexure, effective from 20 October 2023.
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Provisions expressly mentioned in the judgment/order text.
Input tax credit restriction: credit limited to lower notified state tax rate when same-line supplier charges higher rate.
The notification inserts a proviso limiting input tax credit for input services in the same line of business to the tax amount corresponding to the lower notified state rate where an upstream supplier charges a higher rate, illustrated by a motor cab transport example; it also amends wording and omits certain classification entries in the rate schedule and Annexure, effective from 20 October 2023.
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