GST Notification No. 20/2018-C.T. (Rate) dated 26.07.2018 by which Input Tax Credit (ITC) has been made to lapse is issued beyond the powers vested in Government
By: – Pramod Kumar Rai
Goods and Services Tax – GST
Dated:- 7-9-2018
I came across Notification No. 20/2018-C.T. (Rate) dated 26.07.2018, issued in exercise of powers conferred by Clause (ii) of proviso to sub section 3 of Section 54, by which Notification No. 5/2017-C.T. (Rate) dated 28.6.2017 has been amended to allow refund of unutilised input tax credit in respect of certain commodities of garment industry w.e.f. 1.8.2018, where credit has accumulated on account of inverted duty structure ( rate of tax on inputs being higher than the rate of tax on the output supplies of such goods).
While doing so, this notification going beyond the legislative mandate also prescribes that accumulated Input Tax Credit (ITC) lying unutilised in balance in respect of these commodities, after payment of tax up to the Month o
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duty structure, a refund shall not be given. Thus, the power is limited to decide coverage of commodities and services for the purposes of refund of accumulated credit alone, where accumulated credit can be converted into cash refund. Under Sub-clause 2 of Section 54(3), no power is given to go beyond the refund and to nullify the claim of credit itself. Lapsing of credit basically nullifies the credit claim under Section 16 of CGST Act which cannot be done under Section 54 of the Act.
The Notification No. 20/2018-C.T. (Rate) dated 26.07.2018 is issued under so called powers conferred by Clause (ii) of proviso to Section 54(3) vide which credit has been made to lapse and thus this notification is ultra vires the act.
I thought that based on representation of the industry Notification No. 20/2018 shall be corrected/amended, simply because under Section 54 of the CGST/SGST Act, government does not have power to force lapse of any credit. However to my utter surprise I came across Circ
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ade to lapse, the very credit disappears and thus tax payer cannot use it anywhere.
Credit available with taxpayer can be used only for payment of taxes, where as credit refunded in liquid cash can be used for any purpose. Thus denial of refund of accumulated credit under Section 54, is basically denial of conversion of credit into cash. Denial of refund is neither equivalent to Denial of Credit nor lapsing of credit. Under section 54 when a refund claim is made with respect to accumulated credit, the amount of refund claim needs to be debited from the electronic credit ledger as prescribed under Sub-Rule (3) of Rule 86 of CGST/SGST Rules 2017 and in case refund so filed is rejected, either fully or partly, the amount debited under sub-rule (3), to the extent of rejection, shall be re-credited to the electronic credit ledger under Sub-Rule (4) of Rule 86 of CGST/SGST Rules 2017. This also shows that rejection/denial of refund claim does not have anything to do with lapsing of credit.
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#2370; व सेवाकर अधिसूचना क्रमांक 20/2018 दिनांक 26/07/18.
विषय :1.कपडे पर संग्रहित inverted ITC को समाप्त नही करने हेतू ।
2.अधिसूचना क्रमांक 20/2018 (वस्तू व सेवाकर)की समीक्षा करने हेतू ।
महोदय,
सादर वन्दे।
वस्त
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;िया जाना चाहिए और भविष्य मे इसके उपयोग करने का हमारा अधिकार जारी रखा जाना चाहिए।
उपरोक्त अधिसूचना वस्तू व सेवाकर परिषद की 28 वी बेठक मे की गयी सिफ़ारिश के आधार पर जारी की गयी &
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52;िषद की बेठक मे संग्रहित itc को समाप्त करने का निर्णय नही हूआ था किन्तु इसके विपरीत पर अधिसूचना मे इसे समाप्त (lapse) कर दिया गया जो की उपयुक्त प्रतीत नही होता।
2. उपरोक्त अधिसूचना धा
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एगी,इस धारा के अंतर्गत प्रदत अधिकार मात्र वस्तुओं और सेवाओं के लिए संचित क्रेडिट की वापसी का कवरेज तय करने तक ही सीमित है। धारा 54 किसी भी तरह के आईटीसी को समाप्त करने के लिए स&#
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#2350;ारी कार्यशील पूंजी का हिस्सा है, इसलिए भविष्य में हमारी कर देनदारियों के निर्वहन के लिए इसका उपयोग करने का हमारा मूल अधिकार है। अत इसे समाप्त नहीं किया जाना चाहिए।
4. जीएसट
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8; किया है। इस प्रकार इसे समाप्त किया जाता है तो हमारी लेखांकन और लाभप्रदता (accounting and profitability) पर प्रतिकूल प्रभाव पडेगा।
5. आईटीसी संचय की अवधि 01/07/17 से 31/07/18 थी और इस दोरान संग्रहित आईटीसी का भविष
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325;ा उपयोग कर सकेंगे , इस प्रकार अचानक आईटीसी को समाप्त करना यह उचित नहीं है, क्योंकी कोई भी अधिसूचना भविष्य के लिए प्रभावी होनी चाहिये लेकिन इस अधिसूचना से भूतकाळ मे प्रदत अध&#
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319; यह पता लगाना असंभव है कि कोनसी जीएसटी का उपयोग हो चुका है और कौनसी जीएसटी अधिशेष है। इसी कारण से ITC समाप्ती के लिए परिपत्र मे दिये गये सूत्रानुसार आनेवाले परिणाम न्यायसंगत
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#2360;की संचित ITC समाप्त हो जायेगी, यह बी के साथ उचित नहीं है क्योंकि ए और बी दोनो के पास inverted itc है और दोनो ने इसके लिए समान मूल्य चुकाया है लेकिन केवल बी संचय के कारण अपनी आईटीसी खो रहा है é
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महोदय, अधिसूचना एक महत्वपूर्ण दस्तावेज होता है ओर इसके प्रकाशित होने से पहले आलेखन (Drafting) को भालीभांती जांचा जाना चाहिये और दस्तावेज की भाषा इतनी सुगम, सरल ओर सक्षम होनी चाहीë
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366; के जारी होते ही सभी हेरान और अचंभित हो गये क्युंकी इसमे lapse शब्द का इस तरह प्रयोग किया गया जिससे प्रतीत होता है की 31/07/18 को जो भी ITC है वह समाप्त हो जायेगी, stock को भी नजरंदाज किया गया और lapse श&
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ना परिषद की सिफारीश के आधार पर जारी की गयी है लेकिन यह सिफारिश के अनुरूप नही होकर विपरीत है क्योंकी इसमे संग्रहित itc को lapse किया गया जबकी परिषद की सिफारिश मे ऐसा कूछ भी नही है।
3. इì
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67;युषजी गोयल ने बताया की सरकार का क्रेडिट को समाप्त करने का कोई इरादा नहीं है,केवल 31/07/18 तक संचित जीएसटी पर धनवापसी नही करेंगे, लेकिन इसके विपरीत अधिसूचना और परिपत्र मे संचित ITC को
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346;ेक्षित था लेकिन इस संदर्भ मे परिपत्र क्रमांक 56/30/2018 दिनांक 24/8/2018 को पुरे 28 दिनो के बाद जारी किया गया, जो की योग्य समय नहीं कहा जा सकता।
आपसे निवेदन है की वस्तुस्थिती को समझे और संग्रह
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