Input Tax Credit

Delhi High Court junks Rs 5,454 crore demand against Indus Towers

Allows input tax credit on inputs and input services used for setting up passive infrastructure

Relief for telcos as SC grants right to claim tax credits on infra duties

Overturns 2014 Bombay HC ruling classifying infrastructure items as non-capital goods

LGES offers measured 2025 outlook after slow EV demand drags down Q3 profit

LGES said it would have booked an 18 billion won operating loss in the quarter without a tax credit received under the US

Supreme Court allows claiming input tax credit on construction expenses

Exception for commercial buildings meant for renting, leasing purposes

Mechanism to control GST fraud in ITC claims expected in November

In FY24, Central GST officers booked 9,190 cases involving fake ITC worth Rs 36,374 crore

Fake ITC claims detection by GST officers up 51% at Rs 36,374 cr in FY24

Fake input tax credit (ITC) claims detection by central GST officers increased 51 per cent to Rs 36,374 crore in 2023-24, Parliament was informed on Monday. Minister of State for Finance Pankaj Chaudhary shared details of the fake input tax Credit (ITC) cases booked by Central Tax formations during the 2022-23 and 2023-24 fiscals in a written reply to the Lok Sabha. During 2023-24, 9,190 cases were booked by the central GST officers, involving fake ITC of Rs 36,374 crore. 182 persons were arrested and voluntary deposits of Rs 3,413 crore were made in the cases. During 2022-23, Rs 24,140 crore fake ITC were detected in 7,231 cases. 152 persons were arrested and Rs 2,484 crore taxes were deposited voluntarily. The Number of cases booked by central tax formation during 2021-22 was 5,966. Chaudhary said the challenges in tracking fake ITC fraudsters relate to masterminds, who operate the fake ITC generation through control and management of a complex web of entities created across ...

GST suppliers giving discounts must ensure undertaking from client: CBIC

Suppliers giving post-sale discounts through credit notes under GST will have to ensure that the client gives an undertaking or a CA certificate stating that the ITC availed on the discount value has been reversed, the CBIC has said. Currently, there is no mechanism to track whether the Input Tax Credit (ITC) on such discounts has been reversed or not. Till the time a functionality is made available on the common portal to enable the suppliers as well as the tax officers to verify the reversal, the supplier may procure a certificate from the recipient of the supply, issued by the Chartered Accountant (CA) or the Cost Accountant (CMA), certifying that the recipient has made the required proportionate reversal of ITC at his end in respect of such credit note issued by the supplier. In cases, where the amount of tax (CGST+SGST +IGST and including compensation cess, if any) involved in the discount given by the supplier to a recipient through tax credit notes in a financial year does no

HC rejects appeal over reversal of input tax credit on fraudulent supplies

The court said that merely because the firms were registered on the date of the transaction, it cannot be said that the department is bound to give ITC benefit to the assessee

IndiGo gets demand notice over FY19 input tax credit discrepancies

IndiGo has received a tax demand following the rejection of an input tax credit that was availed by the company in 2018-19. In a regulatory filing on Wednesday, the company said it has received a "demand of Rs 31,240, including tax of Rs 21,240 and penalty of Rs 10,000 for the FY 2018-19". The demand has been issued by the Deputy Commissioner of the tax department in Hyderabad. "The tax officer has denied input tax credit of Rs 21,240 availed by the company and raised the... demand," the filing said. The company also said there is no material impact on financials, operations or other activities due to the demand.

HDFC Life gets GST demand orders of Rs 27 cr for short payment of taxes

HDFC Life Insurance Company on Thursday said it has received GST demand orders of over Rs 27 crore for alleged short payment of taxes. In two separate regulatory filings, the insurer said it has received tax demand orders of over Rs 16.5 crore and Rs 10.5 crore from authorities for alleged short payment of GST and input tax credit claim mismatch. The demand orders include interest and penalty as well. The company said it will file appeals against the GST demand orders before the Appellate Authority. Shares of HDFC Life settled 1.27 per cent higher at Rs 634.20 apiece on the BSE.

CGST Commissionerate busts syndicate involved in Rs 1,000 cr ITC fraud

Meerut CGST Commissionerate on Thursday busted a syndicate that fraudulently claimed Input Tax Credit of over Rs 1,000 crore through a network of 232 fake firms and arrested three persons. The Anti-Evasion branch of Central Goods and Services Tax (CGST) of Meerut Commissionerate started an investigation in October 2023 into a large syndicate that fraudulently claimed ITC by way of fake billing, an official statement said. The investigation conducted so far has revealed that a total number of 232 fake firms, with 91 firms registered on a single mobile number, are registered at various places across the country and have passed inadmissible ITC of around Rs 1,048 crore, it said. The total value of goods shown to be supplied through these firms is around Rs 5,842 crore, it said. Through the use of various analytical tools such as E-way Comprehensive Portal, Advait and Business Intelligence and Fraud Analytics (BIFA), the CGST Commissionerate carried out a deeper investigation, it ...

Biocon receives a penalty of over Rs 3 crore in GST related issues

Biocon Ltd on Friday said it has been imposed a penalty of over Rs 3 crore over GST-related issues. The company has received an order of adjudication imposing a penalty of Rs 3,03,78,465 dated February 22, 2024, from the office of Deputy Commissioner of Commercial Taxes, Divisional GST Office, Bangalore, Biocon Ltd said in a regulatory filing. The demand is related to input tax credit reporting error in GST monthly returns, denial of input tax credit on sales and promotional expenditures, valuation issue GST under corporate guarantee, and denial of exemption on export of services, it added. Biocon further said it is "in the process of taking appropriate actions, including but not limited to, filing of the necessary appeal with the appellate authority in this regard". There is no material impact on the financials, operations or other activities of the company, the filing said.

FinMin's DGGI busts 1,700 fake Input Tax Credit cases, nabs 98 fraudsters

GST intelligence officers have detected fake Input Tax Credit (ITC) cases worth Rs 18,000 crore from April to December in the current fiscal and arrested 98 people, the finance ministry said on Saturday. In the current financial year, the Directorate General of GST Intelligence (DGGI) has laid special emphasis to identify and apprehend the masterminds of fake Input Tax Credit (ITC) and disrupting syndicates, operating across the country. "In the current financial year (up to December 2023), 1,700 fake ITC cases involving Rs 18,000 crore have been detected and 98 fraudsters/masterminds have been apprehended," a statement said. DGGI has unravelled cases using data analysis aided by advanced technical tools, leading to the arrest of tax evaders. These tax syndicates often use gullible persons and enticed them with jobs/commission/bank loan, etc, to extract their Know Your Customers (KYC) documents, which were then used to create fake/shell firms/companies without their knowledge and .

Employees' payment for canteen services will not attract GST: AAR

GST and input tax credit applicable for company's payment to canteen service provider not recovered from employees

Restaurants' body seeks restoration of ITC, higher GST rate of 12%

The National Restaurant Association of India on Monday urged the government to restore input tax credit to restaurants while increasing the GST rate to 12 per cent from the current 5 per cent, ahead of the upcoming Union Budget. In a letter to Finance Minister Nirmala Sitharaman, the National Restaurant Association of India (NRAI) also called for an equitable and fair e-commerce policy, saying balanced policies and regulations are required to enable a level playing field, where platforms can continue to innovate, while restaurants, delivery partners and consumers are protected from potentially exploitative practices. The restaurant industry was one of the sectors that suffered the most during the pandemic but showed great resilience to survive and has since been on a steady path of recovery. If the sector gets a certain amount of policy and budgetary support in the upcoming Budget, it will propel the sector towards an accelerated pace of growth, NRAI said in a statement. Seeking ...

GST intel unit detected over Rs 1.98 trn worth tax evasion cases in 2023

The GST intelligence unit detected tax evasion of more than Rs 1.98 lakh crore last year and arrested 140 masterminds who were involved in defrauding the exchequer, the finance ministry said on Thursday. In 2023, the Directorate General of GST Intelligence (DGGI) detected significant GST evasion in diverse sectors like online gaming, casinos, insurance and secondment (import of manpower services). "DGGI has achieved an increase in detection of cases of evasion and voluntary payments. In 2023, DGGI detected 6,323 cases involving evasion of duty of Rs 1,98,324 crore with a voluntary payment of Rs 28,362 crore. 140 masterminds involved in GST evasion were arrested," the ministry said in a statement. This is a significant improvement as compared to 2022 wherein 4,273 cases were detected, amounting to duty of Rs 90,499 crore, and voluntary payment of Rs 22,459 crore and 97 arrests were made. There was a 119 per cent increase in the year-on-year amount of duty evasion detected by DGGI an

GST officers detect over 29,000 bogus firms involved in fake ITC claims

The government on Sunday said GST officers have detected 29,273 bogus firms involved in fake Input Tax Credit (ITC) claims of Rs 44,015 crore in eight months till December 2023 during a drive against fake registration, which helped save revenue of Rs 4,646 crore. In the October-December quarter, 4,153 bogus firms that involved suspected ITC evasion of around Rs 12,036 crore were detected. As many as 2,358 of these bogus firms were detected by the Central GST Authorities. Maharashtra topped the list with 926 bogus firms detected, followed by Rajasthan (507), Delhi (483) and Haryana (424). The detection during the December quarter protected revenue of Rs 1,317 crore of which Rs 319 crore has been realised and Rs 997 crore has been protected by blocking ITC. As many as 41 persons were arrested in these cases while 31 of these arrests were made by Central GST Authorities, the finance ministry said. "Since the initiation of the special drive against fake registrations in mid-May 2023, a

Distributors write to Hindustan Unilever, oppose margin structure

AICPDF asks HUL to restore old margin structure

GST dept issues demands, penalties totaling over Rs 19 cr to Ceat Tyres

Tyre maker CEAT Ltd on Wednesday said it has received GST demand and penalties totalling over Rs 19 crore from tax authorities in Maharashtra and Vadodara. The Additional Commissioner, CGST & Central Excise, Vadodara has issued an order for an interest of Rs 3.27 crore along with a penalty of Rs 13.68 crore following a show cause notice (SCN) that was initially issued towards the delay in reflection of input tax credit to the credit ledger, caused due to technical issue of TRAN-1 return, CEAT Ltd said in a regulatory filing. In another case, Deputy Commissioner of State Tax, Maharashtra has issued an order demanding Rs 22 lakh and interest of Rs 26 lakh, together with penalty of Rs 2 lakh on following an SCN initially issued for reversal of input tax credit on non-payment of tax by suppliers. "Interest of Rs 1.59 crore is also levied towards the delay in reflection of Input Tax Credit to the credit ledger, caused due to technical issue of TRAN-1 return," it added. Currently, the ..

GST exemptions disrupt input tax credit chain, will complex GST: CBIC chief

Indirect tax authorities to send intimation to businesses not complying with e-invoicing rules