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Input Tax Credit

Input Tax Credit – Restriction on ITC Utilisation in Electronic Credit Ledger

The CBIC (Central Board of Indirect Taxes and Customs) vide notification no. 94/2020 on 22nd December, 2020 has introduced new rule which is Rule 86B. Rule 86B has been effective from 1st January 2021. According to the new Rule 86B, ITC has been reduced from 10% to 5% of eligible ITC if Input Tax Credit to be availed in respect of invoices does not uploaded by suppliers in their GSTR-1/… Read More »Input Tax Credit – Restriction on ITC Utilisation in Electronic Credit Ledger

Can Buyer Claim ITC If Supplier Has Not Paid His Tax Under GST?

Input tax credit a.k.a. ITC is the tax paid on the purchase of goods or services which can be set off against the tax liability on the sale of goods or services. Under GSTR-1 and GSTR-3B system, the tax credit is claimed by the recipient based on the sales invoices uploaded by the seller/supplier. The provisional credit (without invoice upload) is allowed only to the extent of 10% of ITC… Read More »Can Buyer Claim ITC If Supplier Has Not Paid His Tax Under GST?

Refund of Accumulated Input Tax Credit of Compensation Cess

The calculation of compensation Cess under GST is very similar to calculating GST. Compensation cess is applicable above the amount of GST charged on a specific good or service. The stipulated rate is applied to the transaction value given under CGST Act 2017- section 15. According to this act, the centre needs to compensate the states for loss of their revenue due to the execution of GST because GST is… Read More »Refund of Accumulated Input Tax Credit of Compensation Cess