https://www.taxtmi.com/forum/issue?id=120435 The dispute concerns whether reversal of input tax credit on compensation cess is required when cess is withdrawn. One position interprets the reversal mechanism for supplies becoming exempt to require payback of ITC on capital goods, inputs, WIP and finished goods held at the change, with exports excepted. The counterposition holds that ITC validly availed and already utilised against output liability when cess was leviable need not be reversed because the withdrawal is prospective. Fully utilised ITC before the change poses no reversal issue; accumulated unrefunded cess balances in the electronic credit ledger remain administratively unresolved. en-us Mon, 08 Sep 2025 19:56:05 +0530 Sun, 14 Sep 2025 15:52:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=120435 The dispute concerns whether reversal of input tax credit on compensation cess is required when cess is withdrawn. One position interprets the reversal mechanism for supplies becoming exempt to require payback of ITC on capital goods, inputs, WIP and finished goods held at the change, with exports excepted. The counterposition holds that ITC validly availed and already utilised against output liability when cess was leviable need not be reversed because the withdrawal is prospective. Fully utilised ITC before the change poses no reversal issue; accumulated unrefunded cess balances in the electronic credit ledger remain administratively unresolved. Discussion-Forum GST Mon, 08 Sep 2025 19:56:05 +0530 https://www.taxtmi.com/forum/issue?id=120435