Input tax credit limitation: recoverable credit on same-line input services capped at tax rate charged on outward supplies. The notification inserts a proviso limiting recoverable input tax credit where the supplier of an input service in the same line of business charges state tax at a higher rate than the rate applicable to the outward supply, disallowing credit in excess of tax paid or payable at the lower rate and illustrating application by example; it also substitutes and omits specified service-classification entries and omits two entries in the Annexure, effective from the operative date stated.
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Provisions expressly mentioned in the judgment/order text.
Input tax credit limitation: recoverable credit on same-line input services capped at tax rate charged on outward supplies.
The notification inserts a proviso limiting recoverable input tax credit where the supplier of an input service in the same line of business charges state tax at a higher rate than the rate applicable to the outward supply, disallowing credit in excess of tax paid or payable at the lower rate and illustrating application by example; it also substitutes and omits specified service-classification entries and omits two entries in the Annexure, effective from the operative date stated.
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