Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 10-5-2017 Last Replied Date:- 11-5-2017 – The new provision reads as follows: (1) Every registered taxable person shall, subject to such conditions and restrictions as may be prescribed and within the time and manner specified in section 44, be entitled to take credit of input tax charged on any supply of goods or services to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person: PROVIDED that credit of input tax in respect of pipelines and telecommunication tower fixed to earth by foundation or structural support including foundation and structural support thereto shall not exceed- (a) one-third of the total input tax in the financial year in which the said goods are received, (b) two-third of the total input tax, including the credit availed in the first financial year, in the financial year immediately succ
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l be entitled to take credit upon receipt of the last lot or installment: PROVIDED FURTHER that where a recipient fails to pay to the supplier of services, the amount towards the value of supply of services along with tax payable thereon within a period of three months from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in the manner as may be prescribed. Explanation.-For the purpose of clause (b), it shall be deemed that the taxable person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such taxable person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise. (3) Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the
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end of second financial year. Person supplying goods and services , where tax is payable under reverse charge is not eligible for input tax credit, which is in line with service tax provisions ITC not available on the basis of supplementary invoices since debit note is required to be issued in lieu of supplementary invoice. ITC needs to be reversed in case of non payment towards value of supply of services within three months of the invoice date, however at present there is no information which is captured for payment to the supplier in the various returns. Therefore format of return to be changed. This provision unjust enriching the Government. Last day of availing credit is 12 months from the date invoice (in accordance with section 18 ) or 30 September of subsequent year or date of filing annual return whichever is earlier. Visit us at www.capradeepjain.com and also at https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/ – Reply By JAIPRAKASH RUIA – The Reply = Sir, New Provision under
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