TaxTMI 
TaxTMI 
TaxTMI 
Credit In Specific Circumstances
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.... Input tax credit can also be taken on the basis of revised tax invoice. (b) Credit in case registration is cancelled: When 'registered person' is only entitled to take credit, registration is a pre-requisite to claim credit. And if registration once obtained is later cancelled, tax payer has no further credits from the date of cancellation. Not only that, as at the date of such cancellation reversal of credits under section 29(5) come into operation. However, Calcutta high court has held that, ITC cannot be denied due to cancellation of GST registration with retrospective effect: Calcutta HC Citation: 2023 Tax scan (HC) 112 It is interesting to note that credit will have to be allowed when cancelled registration is restored in appeal, claim of credit impaired due to inoperative login credentials (during the period of suspension-cancellation up to restoration in appeal) cannot be denied. (c) Credit in case registration is suspended: Suspension of registration is not cancellation of registration. However, during the period of suspension, there is presumption of stoppage of business. As such, where registration is suspended, credit is not admissibl....
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....t notes after the financial year w.e.f. 01.10.2022, earlier it was, due date of furnishing of the return under section 39 for the month of September of the subsequent financial year] or furnishing of the relevant annual return, whichever is earlier. In fact, not only is registration a pre - requisite but filing of return under section 39 is also a requirement. In other words, input tax credit which is a right (in law) of the taxable person is not fully mature and is not available to the taxable person until all pre-conditions have been fulfilled or performed. Section 16(2) lays down these steps that can be fulfilled immediately or in course of time. After the credit is actually availed (by including in Form GSTR-3B), it will be ready for utilization without any time for utilization or any age for its expiration. Section 16(4) provides for time limit for taking credit for invoices and debit notes. It would be important to note that the due date for availing credit from debit notes received is based on the date of which the debit note is issued regardless of the year in which the original supply was made. Section 34(3) refers to "shall issue to the recipient, one or more debit note....
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....r services or both, the value of supply and tax thereon: Where the Recipient (of goods or services or both) has failed to pay the Supplier within 180 days from date of invoice, input tax credit availed, in proportion to such unpaid amount of the invoice shall be reversed by adding to Recipient's output tax liability along with interest as may be applicable. And on payment of the value of the invoice, amount of credit reversed may be reclaimed without any time limit as per rule 37(4). It is to be noted that (i) credit available must be availed within the time limit in section 16(4) and any delay beyond this time limit will result in available credit being forfeited permanently (ii) credit once availed [within the time limit in section 16(4)] but reversed under rule 37(1) may be reclaimed under 37(4) and this time without any time limit to reclaim reversed credit. (n) Capital goods on which depreciation is claimed: Input tax credit will not be allowed on the tax component of the cost of capital goods and plant and machinery if depreciation on such tax component has been claimed under the provisions of the Income Tax Act. (o) Unmatched credit capped at 'x'....
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....pay interest on such reversal amount. If recipient reverses ITC after 30th November, then he is liable to reverse the amount of ITC along with interest as per section 50. The recipient may re-avail the amount of ITC in Form GSTR-3B after the supplier furnishes the Form GSTR-3B. (q) Innovative reprieve (2A/2B v. 3B): With the introduction of (i) new GSTR-3B (ii) new section 41 and (iii) rule 37A, taxpayers are to avail credit based on books (supported by valid tax invoice in respect of eligible inward supplies) but 'temporarily park' them in table 4B2 (of new GSTR3B) so that admissible credit is not lost due to operation of section 16(4) pending resolution of the mismatch with respective Supplier. (r) Burden of proof: Where any person claims that he is eligible for input tax credit under this Act, the burden of proving such claim shall lie on such person Hence, Section 155 makes it incumbent on registered person to satisfy the eligibility conditions and compliances to take credit. (s) Credits via debit notes: Where any additional tax becomes payable, except in demand under section 74, Suppliers may issue debit notes/supplementary invoice to Recipients und....