Restriction on input tax credit where supplier charges a higher state tax rate, limiting credit to the lower rate portion. The notification inserts a restriction that where a supplier of an input service in the same line of business charges State tax at a rate higher than 2.5%, input tax credit on that input service in excess of tax paid or payable at 2.5% shall not be taken, illustrated by an example limiting credit to the 2.5% portion. Parallel provisos are added against serial numbers 8 and 10; textual substitution and omission are made at serial number 34; and serial numbers 696 and 698 in the annexure are omitted.
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Restriction on input tax credit where supplier charges a higher state tax rate, limiting credit to the lower rate portion.
The notification inserts a restriction that where a supplier of an input service in the same line of business charges State tax at a rate higher than 2.5%, input tax credit on that input service in excess of tax paid or payable at 2.5% shall not be taken, illustrated by an example limiting credit to the 2.5% portion. Parallel provisos are added against serial numbers 8 and 10; textual substitution and omission are made at serial number 34; and serial numbers 696 and 698 in the annexure are omitted.
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