Preface

Goods and Service Tax is a destination based tax on consumption of goods and services. It is levied at all stages right from manufacture upto final consumption with the set-off of Input Tax Credit (ITC) of taxes paid at previous stages. Hence, ITC is one of the important aspects under the GST regime.

Since taking and utilization of the input tax credit has pecuniary consequences, the Central Government has made various provisions to check undue and excess availment of the Input Tax Credit. In terms of sub-section (2) of section 16 of the CGST Act, where a taxpayer fails to pay to the supplier of goods or services or both the amount of value of supply along with tax payable thereon within a period of 180 days from the date of issue of invoice by the supplier, the taxpayer is required to pay an amount equal to the ITC availed by him along with interest thereon. Sub-section (5) of section 17 lists the goods and services not eligible for input tax credit. The Finance Act, 2021 has also made amendment in section 16 of the CGST so as to provide that no ITC shall be allowable to a taxpayer unless the details of the same is furnished by the supplier. Taking of wrong, undue and excess ITC would render the taxpayer liable for penal interest at the rate of 18% and penalty under various provisions of the Act.

Hence, taking and utilization of correct and due ITC under the GST Act requires expert knowledge of the various provisions of GST law and rules made thereunder.

The present books has been conceived and devised with a view to provide the GST professionals and the indirect tax executives in the industry, a complete treatise on the law and practice relating to ITC under the GST regime.

The Book comprises as many as 24 chapters covering the entire gamut of law and practice relating to taking, utilization and refund of input tax credit under the GST regime. The provisions relating to blocked credit under section 17 are discussed under the separate chapters. The law and procedure relating to refund of ITC under Inverted Duty Structure and refund of ITC in case of zero rated supply is also discussed in the separate chapters. The Appendix appended at the end of the book comprises text of the relevant Statutory Provisions, Rules, Circulars, FAQs and Forms relating to Input Tax Credit for instant reference of the taxpayer.

Chapter 23 of the Book contains 15 draft replies to contemporary GST Show Cause Notices related to wrong or excess availment of input tax credit.

The text is also enriched with the ratio of important and noteworthy rulings rendered by the Advance Ruling Authorities and decisions of the High Courts rendered on the various issued relating to Input Tax Credit.

In sum, this Book practically deals with the entire spectrum of ITC under the GST law in thoughtfully devised Chapters. The content of the book, it is believed, conforms to the highest standards of accuracy and authenticity. It deals at length with totality of the legal and procedural aspects pertaining to ITC.

We believe that the book would prove to be of immense useful for the GST professionals in handling their ITC related issues.

Though due care has been taken while preparing the book, the readers are advised to refer to the statutory provisions, rules, Notification and Circulars before applying the same during the course of their day-to-day practice. The authors would not be responsible for any legal consequences.

Notwithstanding the best of care, likelihood of certain shortcomings and difference of opinions creeping into cannot be ruled out. We solicit creative feedback from our learned readers bringing to our notice any mistakes, errors, omissions or discrepancies, as and when noticed.

JODHPUR
22 July, 2023	CA. Satyadev Purohit