Your guide on the most crucial pillar of GST - Input Tax Credit.
We hope this guide can help you understand the contours of Input Tax credit with regard what you are eligible for and what is explicitly denied in the law.
The following Presentation enumerates the various provisions w.r.t. ITC, how it can be used,eligibilty and conditions for claiming ITC along with various case studies and illustrations. further, it elaborates the concept of input service distributor.
GST is a vast subject. Some feel that the goods rates have increased whereas some feel its reduced & some are confused thinking that how are they benefited from the implementation of GST
1. presentation on input tax credit under gstNarayan Lodha
GST, Goods And Service Tax, Basic Concept and Principals of Input Credit under GST, Availability of ITC in Special cases, ITC- Input Service Distributor, Electronic Cash Ledger, Electronic Credit Ledger, Refund of Tax under GST
The following Presentation enumerates the various provisions w.r.t. ITC, how it can be used,eligibilty and conditions for claiming ITC along with various case studies and illustrations. further, it elaborates the concept of input service distributor.
GST is a vast subject. Some feel that the goods rates have increased whereas some feel its reduced & some are confused thinking that how are they benefited from the implementation of GST
1. presentation on input tax credit under gstNarayan Lodha
GST, Goods And Service Tax, Basic Concept and Principals of Input Credit under GST, Availability of ITC in Special cases, ITC- Input Service Distributor, Electronic Cash Ledger, Electronic Credit Ledger, Refund of Tax under GST
Presentation on ITC under GST covering:
1) Eligibility and Conditions for taking ITC
2) Blocked Credits
3) Utilization of ITC
Disclaimer - This content is purely for Educational Purpose only. Take Professional consultation before taking any decision based on the contents of this presentation. We shall not be responsible for any loss, whatsoever caused therein.
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Unlike erstwhile indirect tax regime, GST promises seamless credit on goods and services across the entire supply chain with some exceptions. In this webinar, we shall understand and analyse the provisions related to Input Tax Credit under the GST law
One of the fundamental features of GST is the seamless flow of input credit across the chain and across the country for supply of Goods or Services. Know more about ITC under GST at https://cleartax.in/s/gst-input-tax-credit/
Overview of Returns in GST, steps to file returns in GST India, Number of returns in GST, Due date for filing returns in GST India, Late Filing Fee in GST, Procedure to File Returns in GST etc.
Goods and Services Tax - Input Tax Credit Eligibility
Basic Provisions. How can a taxpayer claim ITC what are the conditions and restrictions for claiming ITC under GST.
OBJECTIVE
Under GST, the supplier of goods or services is liable to pay the tax to the Government. However, under the reverse charge mechanism (RCM), the liability to pay GST is cast on the recipient of the goods or services. Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply. In this webinar, we shall understand the applicability and provisions of RCM under GST.
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Timely refund mechanism is essential in tax administration, as it facilitates trade through the release of blocked funds for working capital, expansion and modernisation of existing business. In this webinar, we shall be learning the procedural aspects of refund under GST law.
GST is nothing but a value added tax on goods & services combined. It is the provisions of Input Tax Credit that make GST a value added tax i.e collection of tax at all points after allowing credit for the inputs
Transition to GST could be a cumbersome process if preparations are not started immediately. VAT/Service tax taxpayers should complete the GST migration. Know more about GST Transitional Provision at https://cleartax.in/s/transition-to-gst/
In this you will find a detailed introduction about GST and its conceptual aspects.
1. What is GST.
2. benefit of GST.
3. Importance for different class of people.
4. Registration requiremnets.
5. Supply
6. Place of supply.
7. Value of supply.
8. Time of supply.
9. Returns
Presentation on ITC under GST covering:
1) Eligibility and Conditions for taking ITC
2) Blocked Credits
3) Utilization of ITC
Disclaimer - This content is purely for Educational Purpose only. Take Professional consultation before taking any decision based on the contents of this presentation. We shall not be responsible for any loss, whatsoever caused therein.
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Unlike erstwhile indirect tax regime, GST promises seamless credit on goods and services across the entire supply chain with some exceptions. In this webinar, we shall understand and analyse the provisions related to Input Tax Credit under the GST law
One of the fundamental features of GST is the seamless flow of input credit across the chain and across the country for supply of Goods or Services. Know more about ITC under GST at https://cleartax.in/s/gst-input-tax-credit/
Overview of Returns in GST, steps to file returns in GST India, Number of returns in GST, Due date for filing returns in GST India, Late Filing Fee in GST, Procedure to File Returns in GST etc.
Goods and Services Tax - Input Tax Credit Eligibility
Basic Provisions. How can a taxpayer claim ITC what are the conditions and restrictions for claiming ITC under GST.
OBJECTIVE
Under GST, the supplier of goods or services is liable to pay the tax to the Government. However, under the reverse charge mechanism (RCM), the liability to pay GST is cast on the recipient of the goods or services. Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply. In this webinar, we shall understand the applicability and provisions of RCM under GST.
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Timely refund mechanism is essential in tax administration, as it facilitates trade through the release of blocked funds for working capital, expansion and modernisation of existing business. In this webinar, we shall be learning the procedural aspects of refund under GST law.
GST is nothing but a value added tax on goods & services combined. It is the provisions of Input Tax Credit that make GST a value added tax i.e collection of tax at all points after allowing credit for the inputs
Transition to GST could be a cumbersome process if preparations are not started immediately. VAT/Service tax taxpayers should complete the GST migration. Know more about GST Transitional Provision at https://cleartax.in/s/transition-to-gst/
In this you will find a detailed introduction about GST and its conceptual aspects.
1. What is GST.
2. benefit of GST.
3. Importance for different class of people.
4. Registration requiremnets.
5. Supply
6. Place of supply.
7. Value of supply.
8. Time of supply.
9. Returns
In this you will find a detailed introduction about GST and its conceptual aspects.
1. What is GST.
2. benefit of GST.
3. Importance for different class of people.
4. Registration requiremnets.
5. Supply
6. Place of supply.
7. Value of supply.
8. Time of supply.
9. Returns
GST is an Indirect Tax which has replaced many Indirect Taxes in India.
The Act came into effect on 1st July 2017.
Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
Short Term Course on GST- Input Tax CreditSandeep Gupta
This module deals with Input Tax Credit, an important element of GST. This module states the eligibility to avail ITC and events when ITC can not be availed.
Basic tenets of GST - Dr Sanjiv Agarwal - Article published in Business Advisor, dated May 10, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM #BusinessAdvisorArchives
DECODING GST- INPUT TAX CREDIT OF CGST, SGST AND IGSTCa Ashish Garg
Basic Concepts of Input Tax Credit, availment, utilization and reversal of input tax credit.
In every value added taxation structure, Input tax credit remains the backbone of such tax structures as it removes the cascading effect of taxes. In GST also being a value added tax, it is the intention of the lawmakers to allow seamless flow of credit in the supply chain and remove cascading effect of taxes.
Presentation seeks to address issues faced by stakeholders (importers, exporters, manufacturers, traders) in understanding the law, compliance requirements and challenges in transition
Renewed hopes on GST - Dr Sanjiv AgarwalD Murali ☆
Renewed hopes on GST - Dr Sanjiv Agarwal - Article published in Business Advisor, dated June 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM
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Attached is the compilation of the various prohibitions under the Income Tax Act which pertain to cash transactions. Please ensure your books comply with this to avoid penal consequences.
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The Ministry of Corporate Affairs has come out with a great scheme of regularising any defaults under the Companies Act and LLP Act. If you have any Company or an LLP which has been defaulting due to any reason can avail this scheme and regularise it. They have waived off any additional filing fee or prosecution under the relevant law (if not initiated).
A writeup on the schemes is attached detailing the applicability and other broad contours.
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Sec 50C deals with the deemed income under the Income Tax Act in case of the difference between actual sale value and the defined circle rate value. This section applies only to capital gains and not to business assets such as closing stock.
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In light of the current humanitarian and possible economic turmoil, it becomes imperative for us to have an effective budget and controls for the same. This would ensure we stick to our expenses envisaged at the start of the year and exercise great control over our costs.
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Please find attached a writeup on disallowances under Sec 40A of the Income Tax Act.
Under this section two of the most violated provisions of the law have been explained in simple terms for easy reading. We believe this would help you with tertiary knowledge to avoid making these common errors.
Transactions with related parties.
Cash Transactions.
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This would enable you to decipher which option might be more beneficial for you to lower your tax outgo. Please note these clauses only applies to Companies and not to other forms of businesses.
We are excited to share our annual Clients Circular on the amendments by Finance Act 2020.
The writeup covers important amendments that impact you directly and consciously we have avoided to mention the amendments which are procedural in nature. This writeup we believe would help you in complying with the law during the new financial year now underway.
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SIDBI COVID-19 Startup Assistance Scheme
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The fascinating world of cryptocurrency. How will it impact you, the accountants, the regulators and the taxman? An insight into the world with special emphasis in Indian context
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All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
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A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
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Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
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2. Introduction
2
Input Tax credit under GST
One of the most important pillars of an effective GST is the availability of Input Tax Credit (ITC) to remove the cascading effect of taxes on
transactions. In the enactment these important provisions have been mentioned in Sec 16 to 18 of the CGST Act and the respective State
Acts.
Input Tax Credit (ITC) is the backbone of the GST regime. GST is nothing but a value added tax on goods & services combined. It is these
provisions of Input Tax Credit that make GST a value added tax i.e., collection of tax at all points after allowing credit for the inputs. The
procedures and restrictions laid down in these provisions are important to make sure that there is seamless flow of credit in the whole
scheme of transition without any misuse. Thus, the clarity of rules of availment and utilization will have significant impact on making GST a
taxpayer-friendly tax.
Therefore to act as a ready reckoner we have devised this presentation wherein we would be guiding you about the available ITC
A. General rule with regard to availability of credit
B. Conditions for availment of ITC
C. Credits barred by the law from being availed
D. Analysis of the Input Tax Rules and Reversal of ITC
4. GENERAL CONDITIONS
4
Sec 16 of the CGST and SGST Act
Every registered person can subject to certain limitations and conditions can avail ITC of the goods and services
which have been received during the year. Certain pertinent points with regard to the general availability are as follows
:-
A. The intention of utilize the goods or services for providing output services is of utmost importance. It is not
necessary that all the goods and services which have been procured have to be utilized. Even if goods have been
procured and kept in stock then also the credit of the tax paid on such goods shall be available to us.
B. The credit shall only be available if the goods or services so procured are to be used “in the course OR
furtherance of his business”. Thus if any goods or services have been used which are not in the course of or for
the expansion of the business shall not be available. Therefore there needs to be at least an indirect nexus
between the procurement and utilization.
C. Such Input credit is available in the electronic ledger of the assessee.
5. GENERAL CONDITIONS
5
• IGST
• CGST
• SGST
IGST
• CGST
• IGST
CGST
• SGST
• IGST
SGST
NOTES
A. In terms of the act the credit of IGST can be used against tax liability of all acts. However, the set
off hierarchy would be as mentioned above.
B. Credit available in the ledger of CGST cannot be set off against tax liability under SGST and vice
versa. However both can be set off against IGST.
7. CONDITIONS for ELIGIBILITY
You are in possession of a tax invoice or debit note; AND
The goods or services have been actually received; AND
The tax on such goods and services has been actually paid to the government by
the supplier of goods or services; AND
You have filed your return; AND
Such Inputs have not been used for exempt supply (excluding export); AND
In case of receipt of goods or services in tranches, the last tranche has been
actually received
7
9. RESTRICTED CREDITS
Any ITC available on purchase of Motor
Vehicle or availing Rent-a-cab services
Caveat – If any vehicles are bought for goods
transportation then that would be available.
9
10. RESTRICTED CREDITS
1. Foods and Beverages
2. Outdoor Catering
3. Beauty Treatment
4. Health Services
5. Cosmetic
10
6. Membership of a Club
7. Life and Health Insurance
8. Travel benefits extended to
employees on vacation
NOTES
A. Items 1-5 credit shall be available to those who are providing similar output services.
B. Item 7 – Credit shall be available if mandated by Government as mandatory OR while
providing output taxable services
11. RESTRICTED CREDITS
11
NOTES
A. In case any goods or services are used in an immovable property and such expenses
are NOT capitalised then the credit of such goods and services shall be available.
Works contract services for creation of an
immovable property unless the same is intended
to be sold.
Goods and services used for construction of an
immovable property for self use such as office.
12. RESTRICTED CREDITS
12
NOTES
A. The act does not have any definition of the words “personal consumption”. It can be said to
include those expenses wherein the company is NOT the beneficiary of such goods or services.
Purchase from a dealer covered under composition scheme
Goods or services used for personal consumption
Goods lost, stolen, destroyed, written or disposed off
14. IMPORTANT Points
The vendor should be paid towards the services within 180 days of date of invoice
else the credit is liable to be reversed. Proportionate credit would be available if part
of the money is retained in terms of performance obligations.
Input shall be availed (not necessarily utilised) within 1 year from date of issue of
invoice or before the 20th October of the following financial year whichever is earlier.
In case the assessee is providing some exempt services (not export sales) then
partial reversal of the Input tax credit would be required.
In case of any discrepancy between returns filed by supplier and claim by us, we
would be allowed 2 months to rectify else it would be reversed.
14
15. GUIDELINES
Ensure correct GSTIN of the company is used and the same is informed to all the
vendors of the company
In case of employee reimbursements the employees should ensure they give the
GSTIN of the company before generation of the bills.
Ensure company has a bill capturing mechanism so that credit on any bill is not
missed.
The vendors charge correct GST (IGST or CG+SG) to avoid any issues later on.
Since tax is to be paid by the recipient upon supply from unregistered dealer hence it
needs to be taken care that it is availed in the subsequent month
15