Input tax credit reversal on common inputs requires verification, while annual-return discrepancies require examination before tax determination.

Input tax credit reversal on common inputs requires verification, while annual-return discrepancies require examination before tax determination.Case-LawsGSTSection 17(2) requires input tax credit reversal only to the extent credit on common goods or s…

Input tax credit reversal on common inputs requires verification, while annual-return discrepancies require examination before tax determination.
Case-Laws
GST
Section 17(2) requires input tax credit reversal only to the extent credit on common goods or services supports both taxable and exempt supplies; no reversal arises for wholly exempt traded cattle feed where no credit was availed on its purchase. GSTR-9 may correct figures reported in periodic returns, but a difference between GSTR-1 and GSTR-9 attributed to clerical error requires verification. Credit availability, any reversal, and resulting tax liability require determination after examining records and the reconciliation explanation with an opportunity of hearing.
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