INPUT TAX CREDIT (ITC) UNDER GST – PROCEDURAL ASPECTS & LITIGATIONS

PROCEDURAL ASPECTS-

• Eligibility and conditions for availment of ITC
• Reversal of ITC for non-payment of consideration within 180 days (Rule 37)
• Apportionment of credit
• Blocked Credit
• Availment / Reversal of credit in different circumstances
• ITC in respect of capital goods and inputs sent for job-work
• Manner and distribution of credit by Input Service Distributor (ISD)
• Manner of recovery of credit distributed in excess
• Order of utilisation of input tax credit (Rule 88A)
• Manner of calculation of interest on delayed payment of tax (Rule 88B)
• Restrictions on use of amount available in electronic credit ledger (Rule 86B)

Litigations pertaining to ITC-

• Fake invoice cases
• Mismatch in GSTR 2A and 3B
• Allegation of non-receipt of supply
• Suo moto cancellation of supplier’s registration retrospectively
• Supplier has not filed GSTR-3B (Rule 37A)
• Penalty for passing off inadmissible ITC
• Blockage of ITC (Rule 86A)