ITC Lapsed on fabrics

notification no 20/2018 should be reviewed.

1.its on recommandetion of gst council but in the minutes of 28th meeting which available on councils website only refund is allowed and even word like lapse is not used. it means it was not decided in meeting to lapse the accumulated itc. hence the notification is not according to gst recommandetions.

2.it is refered to section 54 (3)2 which is only for refund of itc and it does not empower to lapse any kind of itc. section for lapse is not mentioned in it.

3. we paid value for accumulated itc as well as income tax also on its value for 17-18. it is our current asset and part of our working capital so we have basic right to utilize it for gst liabilities in future.

4. shri piyush goyal sir also told that govt will not lapse itc only block for refund but it is lapsed in notification and circular.

5. when intention is to lapse inverted itc then it should be lapse on base of invertion only instead of surpluse any one who have utilized it have nothing to loose but who have surpluse he will loose its not fair.

FOR PROCEDURE & HOW TO CALCULATE THE LAPS ITC PLZ. REFER  CIRCULAR 56/30/2018, DT 24/08/2018

(AS THE LAPS ITC HAS TO BE SHOWN AS REVERSAL UNDER TABLE 4 OF GSTR 3B , SO FOR COMPLETE EXPLANATION THIS PLZ REFER THE ABVOE SAID CIRCULAR)