GST Info Tamil

What is Section 17(5) of the CGST Act for Blocked Credits? The blocked credits, as defined under Section 17(5) of the CGST Act, is a provision for every regular taxpayer, that expands upon the list of purchases that are not eligible for ITC claim, that is, the purchases on which GST has been paid but the business cannot claim Input Tax Credit (ITC) over the same. Clause-wise Explanation of Ineligible ITC, as mentioned in Section 17(5) of the CGST Act As defined under Section 17(5) of the CGST Act for blocked credits, input tax credits shall not be available under the following conditions, Clause Explanation Clauses (a), (aa), and (ab) – Purchase of Conveyance and Transportation (a) Motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:- (A) further supply of such motor vehicles; or (B) transportation of passengers; or (C) impartin...

ITC cannot be denied due to non-reflection in Form GSTR-2A Diya Agencies v. The State Tax Officer & Ors., Kayamkulam1 In a recent ruling, the Kerala High Court (‘High Court’) held that Input Tax Credit (‘ITC’) cannot be denied merely on the ground that the invoice details are not appearing in Form GSTR-2A. Arguments by the Petitioner: • The Petitioner has fulfilled all the conditions prescribed in Section 16(2) of the Central Goods and Services Tax Act, 2017 and paid the amount of tax to the supplier. • The Petitioner does not have any control over reflection of data in Form GSTR-2A. • Press Release issued by the Ministry of Finance dated October 18, 2018, clarified that Form GSTR-2A is for taxpayer’s facilitation and does not impact the ability of taxpayer to avail ITC. This was considered by the Hon’ble Supreme Court in UOI v. Bharti Airtel & Ors.2. • The Calcutta High Court in Suncraft Energy Pvt. Ltd. v. The Assistant Commissioner, State Tax, Ballygunge 3 held that due to d...

  Reverse Charge Mechanism is not a new concept for taxation system in India. Reverse Charge Mechanism was also prevailing in the service tax regime before introduction of GST in India. It is well aware to us that under indirect taxation system, it is the supplier who is liable to collect the tax from the recipient of goods or services and deposit the same to tax authorities. However, in some cases, the Government has been given power to notify certain goods or services where the supplier shall not be liable to pay tax rather the recipient of goods or services shall deposit the tax to the tax authorities. This mechanism in known as 'Reverse Charge Mechanism' or RCM in short. RCM has also been introduced under GST law. The definition of 'Reverse Charge' is given in Section-2(98) of the CGST Act, 2017.  RCM stands for Reverse Charge Mechanism Normally under GST, the supplier of goods or services is liable to pay GST on supply of goods or services. But, in some cas...