Page 2 - Input Tax Credit

GST intelligence detects tax evasion of Rs 1.36 trillion so far in FY24

Between Apr 2020- Sep 2023, over 6,000 fake ITC cases reported

CREDAI asks developers to focus on green construction, seeks ITC in GST

The real estate sector has been growing phenomenally in the past two years on strong consumer demand and there is a need for developers to focus on green construction, realtors' body CREDAI President Boman Irani said on Friday. Irani was addressing the 21st CREDAI NATCON conference being held here. Around 1,400 real estate developers are participating in this event. "Real estate has been growing phenomenally," Irani said. Housing sales have risen sharply in the last two years as consumer demand revived strongly post-COVID pandemic. CREDAI Chairmam Manoj Gaur said it is the best time for the real estate sector and the momentum would continue if developers do not commit past mistakes. Irani highlighted the importance of the real estate sector, which is contributing 7-8 per cent to India's GDP. The CREDAI president pointed out that the construction sector contributes 26 per cent to global pollution and asked its developer members to focus on green development. "We have to be ...

Can't block ITC for GST on obligatory transport for women employees: AAR

Authority's ruling in Tamil Nadu would hold precedence in states where employers are obliged to drop women staff at specific hours, say experts

Time limit under GST to claim input tax credit constitutionally valid: HC

Under GST law, the deadline for claiming ITC is November 30

Biz can claim ITC on goods procured for distribution to dealers: GST AAR

Businesses can claim input tax credit on items, like gold coins and white goods, procured for distribution to dealers upon achieving pre-specified sales targets as part of promotional schemes, a GST advance ruling authority has ruled. The Karnataka-bench of the AAR (Authority for Advance Ruling) ruled that ITC can be availed on taxes paid for procurement of white goods or gold coins for the purpose of incentive to dealer as it is a supply. Orient Cement Ltd had approached the AAR seeking ruling in whether ITC can be claimed on distribution of gold coins and white goods to its dealers upon achieving a specified target fixed under the scheme. The company also offers various promotional schemes "Monthly/ Quarterly Quantity Discount Scheme", etc. The said sales promotion scheme helps the company in achieving their sales and collection targets. The AAR noted that the applicant is issuing these gold coins and white goods so procured as incentives as per the agreement reached between himse

Banning imports of used equipment to help medical industry reach $50 bn

Steps such as raising customs duty on certain items, banning import of used or old equipment, and introduction of performance linked incentive scheme for value-added production will help India's medical devices industry touch USD 50 billion by 2030, a report by think tank GTRI said. Suggesting six action points for the government and industry for accelerating growth of the sector, the Global Trade Research Initiative (GTRI) also asked the government to not allow input tax credit (ITC) for the IGST paid on import of items where basic customs duty is zero; combatting foreign influence; and encourage local sourcing for essential Make in India products. "The Indian medical devices industry can expand from USD 12 billion to USD 50 billion by 2030, reducing import reliance to 35 per cent and boosting exports to USD 18 billion from USD 3.4 billion at present. The industry's growth potential could surpass that of the smartphone sector due to India's expanding health sector, projected to reac

Insurers gave fake invoices when quizzed on tax credit claims: Officials

GST E-way bill is a document used to trace goods in transit to verify the authenticity of input credit claims

18% GST to be charged on battery charging for EVs: Karnataka AAR

Company setting up charging stations would get input tax credit, it rules

New GST rules on anvil; biz may have to explain discrepancy in ITC claims

The GST Council is likely to decide on a new rule in GST law under which businesses would be required to explain the reasons for excess input tax credit (ITC) claimed or deposit the amount with the exchequer, sources said. They said the Law Committee, comprising tax officers from Centre and states, has opined that where the ITC availed in GSTR-3B return exceeds the amount of ITC available in accordance with the auto-generated statement GSTR-2B by a specified threshold, the registered person may be intimated on the portal about such difference and be directed to either explain the difference or pay the excess ITC along with interest. The Committee has suggested that the provision should kick in if the difference is more than 20 per cent and more than Rs 25 lakh. GST Council is likely to take a final call on the recommendation of the Committee in its 50th meeting on July 11. Currently, businesses use taxes paid by their suppliers commonly referred to as ITC to offset their GST liabil

Check Form 26AS, reconcile with Form 16 before you file your tax return

Claiming excess tax credit in your return could trigger a notice from the tax authorities

GST Council meet: Ways to deal with tax credit mismatch on agenda

Cases to be scrutinised if difference is more than 20%, or over Rs 25 lakh

No ITC claim if vendors of suppliers of company don't pay GST: Punjab AAR

Experts disagree with ruling and say it could be reviewed at higher judicial forums

ITC can't be denied under GST even when post-supply discounts received: AAR

Value of supply would stand reduced, while tax liability remains as it is: Andhra authority

GST Council may vet CBIC's plan for additional validations in return filing

The GST Council in its meeting next month is likely to consider CBIC's proposal to introduce additional validations in the GST return filing system to check evasion and fake input tax credit (ITC) claims, a senior official said. In a special drive since November 2020, central agencies have detected fake ITC claims worth Rs 62,000 crore and arrested 776 persons, including professionals. The move to introduce certain validations in the return filing system is aimed at checking frauds and revenue loss. The Central Board of Indirect Taxes and Customs (CBIC) last week introduced validation and risk rating for GST registrations, as it looks to curb fake entities issuing fake bills just to claim ITC benefit and defraud the exchequer. The official said the strategy to go in for additional validation both at the time of registration and filing of return is aimed at eliminating tax evasion. "We are planning to introduce validations in returns filing system in a way such that the process does

GST council may mull steps to prevent fake generation of ITC: Official

GST Council in its meeting next month, likely to discuss measures to ensure strict provisions for preventing fake generation of Input Tax Credit, aiming to prevent tax evasion, a senior official said

Fake ITCs under GST regime huge challenge for govt: CBIC

The government has implemented validation measures and adopted mandatory physical verification on a risk-based approach

ICICI Pru refutes GST dept contention of tax liability due to ITC claims

ICICI Prudential Life Insurance on Wednesday said it has refuted the contention of the GST department with regard to tax liability due to input tax credit (ITC) claims. In a filing to stock exchanges, ICICI Prudential Life said it had last fiscal received an intimation from the Directorate General of GST Intelligence (DGGI) of estimated tax liability to the company. "The company has filed a response refuting the claim," it said. ICICI Prudential also clarified that it has not received any 'show cause notice with regard to the tax liability from DGGI' for evasion of taxes and/or unpaid dues and hence has not made any provision or contingent liability for the same in the financial statements for the year ended March 31, 2023. In the last fiscal, the Directorate General of GST Intelligence (DGGI) initiated a GST enquiry into certain expenses for which input GST credit had been claimed by the company. "The ongoing enquiries of DGGI is part of an investigation on an insurance industry-

Taxmen issuing notices to insurers for availing tax credit on fake invoices

GST officers have started sending notices to over a dozen insurance companies for availing input tax credit on the basis of bogus invoices in the last six years, sources said. These insurers have availed input tax credit (ITC) on the basis of invoices issued by intermediaries for providing services like advertising and marketing, although no such services were actually provided. As per the GST law, such availment of the ITC is not permissible as the supply of said service did not actually take place. As per the investigations by the Mumbai unit of the Directorate General of GST Intelligence, ITC of Rs 824 crore has been availed by 16 insurance companies. Out of this, the insurers had voluntarily paid Rs 217 crore. Sources said notices are being issued to these insurance companies for wrongful availment of ITC. Investigations revealed that these insurers were actually paying commission beyond IRDAI's permissible limit to their corporate agents in the garb of expenses related to ...

Disallowing input tax credit may increase CSR cost, impact beneficiaries

CSR activities were not treated as a business expenditure

GST officers to seek details of all invoices in case of ITC mismatch

The CBIC issued circular clarifying guidelines on recovery proceedings for the period 2017-18 and 2018-19