Centre must relook proposed GST amendments on ITC

One of the prime objectives of Goods and Services Tax (GST) regime is to provide seamlinpuess input tax credit (ITC) and thus reduce the cascading effect of taxes

One of the prime objectives of Goods and Services Tax (GST) regime is to provide seamless input tax credit (ITC) and thus reduce the cascading effect of taxes. However, in recent years many conditions have been imposed restricting ITC to the recipients of supplies through amendments to the GST Rules and inappropriate use of GST Network (GSTN). The Finance Bill 2022 seeks to amend the Central GST (CGST) Act, 2017 and thus bring in fresh restrictions and also validate many of the actions taken by the government and the GSTN.

Section 16 of the CGST Act, 2017 allows a registered