Kaninika chakrabarti (31 Points)
22 September 2021
VIKAS ESNAPURAM
(CA-JOB)
(226 Points)
Replied 22 September 2021
Not required to pay interest yo can claim once you have received goods/ services and you are in possession of tax invoice.
Lalitha y
(39 Points)
Replied 22 September 2021
Mujeeb Doi
(309 Points)
Replied 23 September 2021
VIKAS ESNAPURAM
(CA-JOB)
(226 Points)
Replied 23 September 2021
As per Rule 36(4), I think there is a provision for 5% of invoices that are not reflected in GSTR 2B earlier GSTR 2A
The amount of input tax credit in respect of the invoices/debit notes whose details have not been uploaded by the suppliers shall not exceed 5% of the eligible input tax credit available to the recipient in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37 as on the due date of filing of the returns in FORM GSTR-1 of the suppliers for’ the said tax period.
So I think no problem with that.
VIKAS ESNAPURAM
(CA-JOB)
(226 Points)
Replied 23 September 2021
@ mujeeb Doi press release of the 45th GST council meeting is regarding INELIGIBLE ITC and not about the eligible ITC.
In the present case, it is eligible itc only not ineligible.
Kaninika chakrabarti
(31 Points)
Replied 23 September 2021
VIKAS ESNAPURAM
(CA-JOB)
(226 Points)
Replied 23 September 2021
To make it simple see rule 36(4).
Interest will be levied for the supplier for not filing his return on the due date but if you are not eligible to claim ITC ( Ex: Sec 17(5)) even you claimed in that interest will be levied on you also. Because you are taking benefit of something which you are not allowed to take.
Mujeeb Doi
(309 Points)
Replied 24 September 2021
VIKAS ESNAPURAM
(CA-JOB)
(226 Points)
Replied 24 September 2021
@ Mujeeb Rule 36(4) for the purpose of calculating 5 % overrides Sec 16. So, if we comply with rule 36(4) no problem at all, Ineligible ITC is a vague term that includes Blocked Credit also.
1. Proportion of goods and services used for exempted supply,
2. Proportion of goods and services used for other than business purpose,
3. motor vehicle having seating capacity of up to 13 persons (including driver). However, if they are used for further supply, as such, or used for transportation of passengers or used for imparting training on driving vehicles, the ITC is allowed.
4. Vessels and aircraft. However, if they are used for making further supply, as such, or are used for transportation of passengers or for imparting training on navigating such vessels or imparting training on flying such aircraft or for transportation of goods, the ITC is allowed.
5. General insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft as referred here in point no.3 & 4. However, if these services are used for the purposes mentioned in the said points, the ITC is allowed. These services are also eligible for credit if the taxable person receiving the service is engaged in the manufacture of such motor vehicles, vessels, aircraft. These services are also eligible for credit if the taxable person receiving such service is in the service of supply of general insurance in respect of such motor vehicles, vessels or aircraft insured by him.
6. Food and beverages
7. Outdoor catering
8. Beauty treatment
9. Health services
10. Cosmetic and plastic surgery
11. Leasing, renting or hiring of motor vehicles, vessels or aircraft as referred here in above point no. 3 & 4 except when used for the purposes specified therein
12. Life insurance and health insurance:
However, if these goods and services are used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply ITC is allowed
13. Membership of a club, health and fitness centre
14. Travel benefits extended to employees on vacation such as leave or home travel concession. However, if the same is obligatory for an employer to provide the same to its employees under any law for the time being in force, ITC is allowed.
15. Works contract services when supplied for construction of an immovable property. However, if this service is used for plant and machinery the ITC is allowed. Also, if this service is an input service for further supply of works contract service ITC is allowed.
16. Goods or services or both on which tax has been paid under composition scheme. In any case, the composite supplier cannot / do not charge GST on his invoice. So, buyer should not apply back working method to bring out the GST component from the invoice value to take credit. This is not permitted.
17. Goods or services or both received by a non-resident taxable person except on goods imported by him
18. Goods or services or both used for personal consumption
19. Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples
20. Any tax paid u/s 74 i.e. tax paid on account of tax not paid, short paid, erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilfull-misstatement or suppression of facts is not eligible for ITC.
21. Any tax paid u/s 129 i.e. tax paid on account of detention, seizure and release of goods and conveyances in transit is not eligible for ITC.
22. Any tax paid u/s 130 i.e. tax paid on account of confiscation of goods or conveyances and levy of penalty is not eligible for ITC.
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