180 days ITC reversal on non-payment of consideration - A dilemma for taxpayer

  • Category: Input Tax Credit
  • Date: 23-12-2020
  • Writer: Harish P Devda


  • Background
  • Extract of relevant provisions and analysis for 180 days reversal
  • Whether reversal prescribed under section 16(4) 2nd proviso r/w rule 37 to be done in GSTR-3B?
  • Manner of calculating ITC reversal
  • Non applicability of 180 days ITC reversal provisions
  • Discussion in GST council meeting and validity of the provision of ITC reversal in case of non-payment of invoice value and tax within 180 days
  • Similar provision existed under erstwhile law- in Cenvat...
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Analysis of ITC utilization in DRC-03 for GSTR-9 & GSTR-9C

  • Category: Input Tax Credit
  • Date: 10-12-2020
  • Writers: CA Akshay M Hiregange, Varsha Vasante Gowda

We are at the flag end of filing the annual return and audit certification (GSTR 9 & 9C) For FY 2018-19 (courtesy of multiple extensions) i.e. on 31st December 2020.

Taxpayers have an option to pay additional liability not declared in GSTR-1 or GSTR-3B, in GSTR-9 through Form DRC-03 based on Para 4 of GSTR-9 instructions for FY 2017-20.

This article enumerates utilization of ITC against GST liability for payment through DRC-03 during GSTR-9 filing which would be beneficial to many...

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ITC restriction relating to construction of immovable property

  • Category: Input Tax Credit
  • Date: 17-09-2020
  • Writer: Shilpi Jain

This article has been published in the Chambers' Journal Aug '20 edition.

The credit available under GST is seemingly much wider than what was available under the earlier laws for the mere reason that under GST, credit will be available if it is used for business. However, no tax law can exist without restricting any credit and GST is no exception, which blocks certain credits even if used for business.


It is thus important to understand the extent of the credits blocked under...

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Order of utilisation of input tax credit - Huge balances in the CGST credit ledger

  • Category: Input Tax Credit
  • Date: 11-09-2020
  • Writers: Aporna Das Gupta, Shilpi Jain

The Government’s slogan for the implementation of GST has always been ‘One Nation One Tax’, though none of the stakeholders have ever been able to relate GST to this slogan for the reason that GST has continued (as in the earlier regime of indirect taxes) to levy

  1. A Centre’s Tax i.e. IGST
  2. State Taxes i.e. each State having its own SGST like TNGST, MGST, etc.
  3. Central Taxes i.e. each State having its own CGST (depicted by the fact that the CGST of one State is not available...
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Input services ITC also eligible for refund under Inverted duty structure – Analysis of Guj HC decision & its impact

  • Category: Input Tax Credit
  • Date: 04-09-2020
  • Writers: CA Venkata Prasad, Monika Motta

Impact of ITC & refund due to merger, Demerger, Spin-off and Split within India as well as Outside India

  • Category: Input Tax Credit
  • Date: 29-05-2020
  • Writers: Adv.Venkatanaryana GM, CA Spudarjunan S


Nowadays corporate restructuring has become a need for change in the organizational structure, or business model of a company. It is done majorly to expand the business, revive a declining business, increase a company’s value or to gain a competitive advantage, attain the benefit of synergy etc. Post this Covid-19 pandemic as well, we may notice major corporate restructuring because of the covid-19 effect. One of the forms of corporate restructuring is the transfer of...

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Implications of Various Discount and Promotion Schemes

  • Category: Input Tax Credit
  • Date: 13-05-2020
  • Writer: Shilpi Jain

This article features in the monthly journal of the Chamber of Tax Consultants - Apr ’20 issue.

It is inevitable for any business to have a discount, business promotion or incentive schemes being offered to its distribution channel or the end customer. These schemes take different avatars depending on business needs. This being a typical and a critical expenditure for many industries, innovation is the stress whereby business promotion schemes could take the form of free goods or...

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Employee welfare expenses – higher ITC under COVID

  • Category: Input Tax Credit
  • Date: 13-05-2020
  • Writer: CA Ashish Chaudhary


  1. Background:

The entire world has been engulfed in tackling COVID-19 and so India. Declaration of COVID as pandemic by WHO has heightened the attention of the world on the serious ramification of the disease. This has also created obligations on the States to undertake necessary preventive and relief measures.

Indian has been proactively tackling this pandemic at the Centre and State level jointly. Union Government has invoked its powers under Epidemic Diseases Act, 1897...

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GST - Denying Refund of ITC not reflected in GSTR-2A- is it valid?

  • Category: Input Tax Credit
  • Date: 12-05-2020
  • Writer: CA Venkata Prasad


The spread of Corona Virus (COVID-19) has caused immense loss to the lives of people and impacted the trade and industry very badly in an unprecedented manner. The Government has announced various relief measures relating to statutory and regulatory compliance matters across sectors. Under GST, the Government[1] inter alia

  • Expediting the processing of refunds to the Exporters
  • Deferment of Rule 36(4) for the period February 2020 to August 2020 and cumulative...
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ITC on Canteen Service- Food for thought

  • Category: Input Tax Credit
  • Date: 06-05-2020
  • Writer: CA Vasant K. Bhat

It is very common that many factories and offices provide canteen facilities to their employees. Such facility may be provided as a matter of compulsion or as per the terms of employment or otherwise. The canteen facility may be provided to employees at free of cost or concessional rate or on chargeable basis.

The GST law with regard to food and beverages has created many confusions. Confusions prevail with regard to classification, rate as well as input tax credit.

Supply of food –...

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