Input tax credit limitation: credit disallowed for excess state tax where the supplier charges a higher rate in same line of business. Where a supplier of an input service in the same line of business charges state tax at a rate higher than 2.5%, credit of input tax charged on that input service in excess of the tax paid or payable at the rate of 2.5% shall not be taken; illustrative examples show the recipient may claim input tax credit only to the extent of tax attributable to the 2.5% rate on the value of the input service. The notification also substitutes specified licensing wording, omits a sub item, and deletes certain Annexure classification entries.
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Input tax credit limitation: credit disallowed for excess state tax where the supplier charges a higher rate in same line of business.
Where a supplier of an input service in the same line of business charges state tax at a rate higher than 2.5%, credit of input tax charged on that input service in excess of the tax paid or payable at the rate of 2.5% shall not be taken; illustrative examples show the recipient may claim input tax credit only to the extent of tax attributable to the 2.5% rate on the value of the input service. The notification also substitutes specified licensing wording, omits a sub item, and deletes certain Annexure classification entries.
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