Taxmann's GST Input Tax Credit by Taxmann

Acronyms in GST I-21 1 GST - AN OVERVIEW 1.1 1 1.1-1 3 1.1-2 ‘ ’ 4 1.1-3 5 1.1-4 5 1.1-5 5 1.1-6 6 1.1-7 6 1.1-8 6 1.1-9 7 1.1-10 7 1.1-11 8 1.2 8 1.2-1 16 1.2-2 17 1.3 23 1.4 24 1.4-1 24 I-5 Contents

I-6 1.4-2 24 1.4-3 24 1.5 25 1.5-1 26 1.5-2 26 1.6 27 1.6-1 27 1.6-2 28 1.7 29 1.8 30 1.9 31 2 HIGHLIGHTS

2.1 32 2.1-1 34 2.1-2 34 2.1-3 35 2.2 36 2.2-1 36 2.2-2 37 2.2-3 39 2.2-4 39 2.2-5 40 2.2-6 40 2.3 41 2.3-1 i.e. 42 2.3-2 42 2.3-3 44 2.4 54

OF GST LAW

INPUT TAX CREDIT (ITC)

I-7 2.5 54 2.5-1 55 2.6 58 2.7 60 2.7-1 60 2.8 62 2.8-1 63 2.8-2 63 2.8-3 65 2.8-4 66 2.8-5 68 2.8-6 69 2.8-7 70 2.9 73 2.9-1 73 2.9-2 75 2.9-3 75 2.9-4 76 2.9-5 77 2.9-6 78 2.9-7 78

3.1 79 3.1-1 80 3.1-2 80 3.1-3 81 3.1-4 82 3.1-5 82 3.1-6 84

I-8 3.1-7 84 3.1-8 87 3.2 87 3.2-1 88 3.2-2 89 3.2-3 91 3.2-4 92 3.3 93 3.3-1 97 3.3-1A 98 3.3-2 102 3.3-2A 104 3.3-3 105 3.3-4 105 3.3-5 107 3.3-6 108 3.3-7 108 3.4 108 3.4-1 110 3.4-2 112 3.4-3 ‘ ’ 125 3.4-4 ‘ ’ 126 3.4-5 ‘ ’ 126 3.4-6 127

4 INPUT TAX CREDIT - OTHER ISSUES 4.1 132 4.1-1 ‘ ’ 132 4.1-2 133 4.1-3 133 4.1-4 134 4.1-5 134 4.2 135 4.2-1 135 4.2-2 136 4.2-3 137 4.2-4 138 4.3 138 4.3-1 139 4.3-2 141 4.3-3 141 4.3-4 142 4.4 143 4.4-1 144 4.4-2 144 4.4-3 145 4.5 146 I-9

5 INPUT TAX CREDIT WHEN EXEMPTED AS WELL AS TAXABLE SUPPLIES MADE 5.1 147 5.1-1 ‘ ’ 148 5.2 151 5.2-1 152 5.3 153 5.3-1 157 5.3-2 158 5.3-3 160 5.3-4 161 5.3-5 161 5.4 162 5.4-1 163 5.4-2 168 5.5 170 6 INPUT SERVICE DISTRIBUTOR (ISD) 6.1 172 6.1-1 172 6.1-2 173 I-10

6.2 173 6.2-1 ‘ ’ 174 6.2-2 ‘ ’ 174 6.2-3 ‘ ’ 175 6.2-4 175 6.3 176 6.3-1 176 6.4 177 6.5 177 7 UTILISATION OF INPUT TAX CREDIT FOR PAYMENT OF TAX ON OUTPUT SUPPLY 7.1 180 7.1-1 180 7.1-2 181 7.1-3 182 7.1-4 182 7.1-5 183 7.1-6 183 7.2 183 7.2-1 183 7.3 184 7.3-1 184 7.3-2 187 7.3-3 188 7.3-4 188 7.3-5 190 I-11

7.3-6 192 7.3-7 192 7.3-8 193 7.3-8A 196 7.3-9 196 7.3-10 198 7.4 198 7.5 198 7.5-1 198 7.5-2 199 7.6 200 7.7 201 7.7-1 201 8 EXPORTS AND IMPORTS 8.1 204 8.1-1 205 8.1-2 206 8.1-3 207 8.1-4 207 8.1-5 209 8.1-6 211 8.2 ‘ ’ 211 8.3 214 8.4 216 8.4-1 219 I-12

8.4-2 220 8.4-3 221 8.4-4 221 8.4-5 222 8.4-6 222 8.5 224 8.5-1 228 8.5-2 228 8.5-3 230 8.5-4 231 8.5-5 233 8.5-6 233 8.5-7 233 8.5-8 234 8.6 234 8.6-1 236 8.6-2 238 8.6-3 238 8.6-4 239 I-13

8.6-5 239 8.7 241 8.8 243 8.9 243 8.10 245 8.11 246 8.11-1 247 8.11-2 247 8.11-3 248 8.11-4 ‘ ’ 249 8.12 249 8.13 250 8.13-1 250 8.13-2 252 8.13-3 253 8.13-4 253 8.13-5 254 8.14 i.e. 254 8.14-1 255 8.15 257 8.16 261 8.16-1 262 8.16-2 263 8.16-3 265 8.17 265 8.17-1 265 I-14

8.17-2 266 8.17-3 266 8.17-4 266 8.17-5 267 9 REFUND IN GST 9.1 268 9.1-1 ‘ ’ 270 9.1-2 vice versa 273 9.1-3 274 9.2 275 9.3 277 9.3-1 278 9.3-2 281 9.3-3 281 9.3-4 282 9.3-5 282 9.4 284 9.4-1 285 9.4-2 286 9.4-3 287 I-15

9.5 289 9.5-1 293 9.5-2 297 9.6 298 9.6-1 299 9.6-1A 300 9.6-2 300 9.6-3 300 9.6-4 301 9.6-5 301 9.7 302 9.7-1 302 9.7-2 303 9.7-3 303 9.7-4 304 9.7-5 305 9.8 305 9.8-1 307 9.8-2 308 9.9 308 9.9-1 309 9.9-2 310 9.9-3 311 9.9-4 311 9.10 311 9.10-1 312 I-16

9.11 313 9.11-1 314 9.11-2 315 9.11-3 315 9.12 315 9.13 ‘ ’ 317 9.14 321 9.14-1 323 9.14-2 325 9.14-3 326 9.14-4 326 9.14-5 327 9.15 327 9.15.1 327 9.16 332 9.17 ‘ ’ 333 9.17-1 334 9.18 334 9.18-1 336 9.19 336 9.20 340 9.20-1 342 9.20-2 344 9.20-3 344 9.20-4 345 I-17

9.20-5 346 9.21 346 9.21-1 350 9.22 351 9.22-1 352 9.23 353 9.24 353 9.25 353 9.25-1 354 9.25-2 355 9.25-3 356 9.26 357 9.27 358 9.28 359 9.29 359 9.30 360 9.31 361 9.31-1 363 9.31-2 363 9.31-3 364 I-18

APPENDICES

SAFEGUARDS FOR FURNISHING A LETTER OF UNDERTAKING IN PLACE OF A BOND BY A REGISTERED PERSON WHO INTENDS TO SUPPLY GOODS OR SERVICES

TO DEAL WITH DIFFERENCE IN INPUT TAX CREDIT (ITC) AVAILED IN FORM GSTR-3B AS COMPARED TO THAT DETAILED IN FORM

2018-19

9.31-4 364 9.32 365 9.32-1 365 9.32-2 366

RELEVANT SECTIONS OF CGST ACT, 2017 371 RELEVANT SECTIONS OF IGST ACT, 2017 386 RELEVANT RULES OF CGST RULES, 2017 389 CLARIFICATIONS REGARDING EXPORTS RELATED REFUND ISSUES 428 REFUND OF IGST PAID ON GOODS EXPORTED 435 RESTRICTIONS ON AVAILMENT OF INPUT TAX CREDIT WHEN FINAL PRODUCT IS EXPORTED 438 REFUND OF IGST ON ITC WHEN GOODS EXPORTED BY POST 442 RESOLVING DIFFICULTY IN REFUNDS DUE TO INVOICE MISMATCHES 447 PROCEDURE FOR CLAIMING REFUND OF INPUT TAX CREDIT IN CASE OF EXPORTS 448 REVISED PROCEDURE TO CLAIM REFUND OF INPUT TAX CREDIT 453 CONDITIONS

WITHOUT PAYMENT OF INTEGRATED TAX 462 CLARIFICATIONS ON REFUND RELATED ISSUES UNDER GST 466 CLARIFICATION REGARDING FULLY ELECTRONIC REFUND PROCESS THROUGH FORM GST RFD-01 AND SINGLE DISBURSEMENT 470 CLARIFICATION

AND

500 I-19

AND

FOR EXPORT

GSTR-2A FOR FYs 2017-18

I-20

CLARIFICATION ON THE ENTITLEMENT OF INPUT TAX CREDIT WHERE THE PLACE OF SUPPLY IS DETERMINED IN TERMS OF THE PROVISO TO SUB-SECTION (8) OF SECTION 12 OF THE INTEGRATED GOODS AND SERVICES TAX ACT, 2017 504

SUBJECT INDEX 507

Acronyms in GST

I-21

I-22

I-23

I-24

Input Tax Credit when exempted as well as

taxable supplies

made

5.1 Proportionate ITC when party used for business or taxable supplies

147

Exempt supply cannot include activities included in Schedule III of CGST Act, except value of land, buildings and securities

nil

5.1-1 Calculation of value of ‘exempt supply’

Para 5.1 148

149 Para 5.1

Supply of goods on high seas sale basis or supply from FTWZ -

AIE Fiber Resource and Trading P Ltd., In re

Exempt supply to include value of land, building and securities -

Explanation

Apportionment of ITC between taxable supply and exempt supply on basis of value except in case of real estate services -

Activities and transactions covered under Schedule III are not ‘exempt supply’ except covered in paragraph 5

Para 5.1 150

except

Electricity is exempt supply

Interest is not exempt supply for purposes of rules 42 and 43

i.e. no reversal of ITC required

Explanation 1

Explanation

Exempt Supply shall not include supply of services to Nepal and Bhutan for purpose of reversal of ITC upto 1-2-2019 exclude

Explanation

151 Para 5.2

Exempt supply shall not include outward freight from India to outside India for reversal of ITC

Exempt supply shall not include value of duty credit scrips

Explanation 1(d)

5.2 Special provisions in respect of Banks, FI and NBFC

‘ ’ ‘ ’ ‘ ’

- Explanation c explanation

Co-operative society accepting deposits and granting loans is Financial Institution - -

Co-operative Credit Society Ltd.,

KnanayaMulti Purpose

proviso

a i ii i.e. Para 5.2 152

5.2-1 Procedure to claim of credit by a banking company or a

Para 5.3

and the balance amount of input tax credit shall be reversed in Form GSTR3B

i.e. i.e. c

d b c

proviso a

5.3 Determination of input tax credit when partly used for taxable supply and partly for exempt supply

153

GST INPUT TAX CREDIT

AUTHOR : V.S. DATEY

PUBLISHER : TAXMANN

DATE OF PUBLICATION : FEBRUARY 2023

EDITION : 13th Edition

ISBN NO : 9789356221376

NO.OF PAGES : 538

BINDING TYPE : PAPERBACK

DESCRIPTION

This book provides complete guidance on the following under GST:

• Input Tax Credit

• Refund of Input Tax Credit

• Export issues relating to Input Tax Credit

Rs.1175 USD 46

It also incorporates various issues related to Input Tax Credit, such as availment, reversal, refund, etc.

The Present Publication is the 13th Edition and has been amended upto 1st February 2023. This book is authored by V.S. Datey with the following coverage:

• [Manner and Requirements] for availing Input Tax Credit

• [Cases] involving reversal of Input Tax Credit

• [Treatment of Input Tax Credit] in case of exempted

• [Refund] of Input Tax Credit

• [Relevant Sections, Rules and Clarifications] regarding Input Tax Credit

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