This article is solely based on the draft GST law.
For the period upto 01.04.2011, courts/tribunals allowed the credit however with advent of specific exclusion in the definition of 'Input service'
GST is said to be levied on supply in legal words taxable event is supply thereby dispensing with the existing different taxable events for different levies
The basic principle of any VAT system is that credit of duty or tax paid on the input goods or service can be availed only for payment of duty on final products or output services. As a natural corollary, if no duty/tax is payable on final product or