Goods and Services Tax – Started By: – Gopikishan Kabra – Dated:- 12-9-2018 Last Replied Date:- 26-9-2018 – according to gst notification no 20/2018 accumulated gst for textile as on 31/07/2018 will be lapse later in another notification they consider stock but it is not fair because. 1. we have paid value for the accumulated gst as well as income tax also as on 31/03/18, so we have rights to utilize the same and it was understood that we can utilize it suddenly how can government lapse the said accumulated gst. i want to ask that does government have powers to lapse it ? should we file a case in court against said decision ? – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = You can file a writ petition. – Reply By Yash Jain – The Reply = Sir, The notification and subsequent clarification there to, provide for lapse of credit accumulated only on account of inverted duty input and not All the lapses 2. Refer rule 89(5) for mechanism for reversing of input on account of accumulation. H
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T MAY BE BLOCKED FOR CASH REFUND BUT MUST NOT BE LAPSED BY FORCE, RIGHT TO UTILIZE OUR SURPLUS GST MUST CONTINUE.2 WHEN THEY DISQUALIFY TEXTILE INDUSTRY FOR CASH REFUND OF ITC, THAT TIME THEY DID NOT CLEARED THAT INVERTED DUTY WILL BE LAPSE AND RIGHT TO UTILIZE THE SAME WAS CONTINUE, .ANY AMENDMENT IN LAW MUST BE EFFECTIVE FROM FUTURE SHOULD NOT EFFECT PAST. I MEAN IF GOVERNMENT INTENTION TO LAPSE INVERTED DUTY THEY HAVE TO ISSUE A NOTIFICATION FOR IT AT THAT TIME WHEN THEY DISQUALIFY TEXTILE FOR CASH REFUND.EXPERTS PLEASE ADVICE IS IT FAIR ?GOVERNMENT HAVE POWERS TO LAPSE OUR SURPLUS GST FOR WHICH WE HAVE PAID VALUE IN CASH ? – Reply By Yash Jain – The Reply = Sir, I think there is some confusion. Lapse is only for fabrics as defined in chapter 55 to 65.It's not for entire textile industry. Please approach ministry of textiles, I think they have already taken matter with FM. As for power of government – Yes they have power in accordance with Constitution of India. They can amend,
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ility of journey up to Supreme Court cannot be ruled out. It is pertinent to mention here without fight you will lose today. If you opt for litigation as you intend, your victory is sure. Keep it on record. This is my assessment of your situation. I also agree with both experts. – Reply By Gopikishan Kabra – The Reply = thanks sir for your replies. we registered grievance on following points . 1. The above notification in exercise of powers conferred by clause (2) of sub section 3 of section 54 only permits to notify the supply of goods and services in respect of which refund shall not be permitted the power is limited to decide coverage of commodities and services for the purpose of refund accumulated credit .The section 54 does not empower to lapse any kind of ITC, even any word like lapse is not used in the above section. 2. We have paid value for the accumulated gst in cash, it s our current asset and part of our working capital, so it is our right to utilize the same in future for
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see it by the following examples Example 1. There are two assesses A and B both have inverted itc A have utilized the same in the said period so he have nothing to lose but B did not utilized it hence he have to lose the accumulated gst, it s not fair with B because both a and b have inverted duty but only b is losing his itc due to accumulation but a have nothing to lose because he utilized his itc. The base of laps should be inverted duty instead of accumulation. Example 2. C who have inverted duty and utilized it till month of june 18,and he have input credit from capital goods in july18 then according to formula given he have to lapse itc out of capital inputs, because lapse itc is calculated for the period 01/07/18 to 31/07/18. 6.There is a huge confusion due to this notification union finance minister shri piyush goyal sir told to traders that the government has no intentions to lapse the credit, but they are just blocking refunds on accumulated gst up to 31/07/18, but it s being
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it on account of inverted duty structure to fabric manufacturers: Fabrics attract GST at the rate of 5% subject to the condition that refund of accumulated ITC on account of inversion will not be allowed. However, considering the difficulty faced by the Fabric sector on account of this condition, the GST Council has recommended for allowing refund to fabrics on account of inverted duty structure. The refund of accumulated ITC shall be allowed only with the prospective effect on Purchases made after the notification is issued. स्पष्ट है कि परिषद की बेठक मे संग्रहित itc को समाप्त करने का निर्णय नही हूआ था किन्त
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