Input Tax Credit

Central tax authorities detected ITC fraud worth Rs 74,781.56 crore across 30,162 cases in FY26 as analytics, biometric checks and enforcement measures strengthened detection

Nine years after GST's rollout, businesses largely back the tax regime but seek more uniform audits, faster refunds and simpler compliance rules

IndiGo on Friday said it has been slapped with a penalty of little over Rs 1.27 crore related to GST input tax credit, and that it will challenge the order. In a filing to the BSE, the airline's parent InterGlobe Aviation said it has been denied input tax credit availed, and has received demand along with interest and penalty by Office of the Joint Commissioner of State Tax, (Appeals) IV Bandra, Mumbai. "The company believes that the order passed by the authorities is erroneous and it has a strong case on merits, backed by advice from external tax advisors," it added. The fine totalling Rs 1.27 crore is for the July 2017 to March 2018 period. While noting that there is no significant impact on financials, the company also said it would contest the same before the appropriate authority.

Analysts flag 175-350-bp hit despite healthy premium growth

PwC has urged the government to clarify whether hyperscale data centre infrastructure qualifies as plant and machinery for GST input tax credit, and to address PE and SEP risks for overseas players

Making insurance products more affordable shows that the govt views the sector as essential as food, says Irdai chief Ajay Seth

Regulatory shocks and withdrawal of a tax benefit slowed down growth, nudging firms to focus on affordability, efficiency and chasing more customers

Deepak Sood says zero GST on life and health insurance has sparked strong growth, with demand set to accelerate in H2FY26 as the industry pushes for deeper penetration and better distribution

Niva Bupa expects a modest 50-60 basis point hit from GST-related ITC loss but aims to offset it through higher policy sales, revised distributor commissions, and cost efficiencies

HDFC Life sees 50% surge in retail term sales after GST cut; CEO Vibha Padalkar outlines margin recovery, product mix shift, and strategies to offset ITC impact

An inverted duty structure arises when the tax rate on inputs is higher than that on finished goods, leading to accumulation of unutilised ITC

The CBIC has notified changes to the annual GST return form GSTR-9, making the reporting of Input Tax Credit (ITC) more comprehensive. The Central Board of Indirect Taxes and Customs (CBIC) on September 17 notified changes to the Central GST (CGST) rules, which will come into effect on September 22 and apply to annual returns filed for the 2024-25 fiscal. GST registered Taxpayers with aggregate turnover above Rs 2 crore are required to file GSTR-9. AMRG & Associates Senior Partner Rajat Mohan said the government has revamped the annual GST return (Form GSTR-9). "Revised structure of form makes it far more detailed, with new tables covering reversals under Rules 37, 37A, 38, 42 and 43, re-claims in subsequent years, transitional credits, import-related ITC, and auto-populated mismatches," Mohan said. Professionals and corporates will need to wait for the revised forms and utilities from GSTN before implementing these changes in practice. "Going forward, this measure underscores a

Industry body Aimed says proposed balanced reforms could help reduce healthcare costs for consumers

The CBIC has clarified that taxes paid on inputs like brokerage and commission for individual life or health insurance policies cannot be claimed as ITC

The circular also stated that post-sale discounts given by manufacturers to dealers would not be treated as consideration for services

Businesses say they may find it difficult to reduce prices to the full extent of GST reduction because they may have paid higher input taxes on stocks lying with them. For that they won't be refunded.

Suggest allowing unused ITC for SGST payments, Customs duty offsets, or tradable scrips

While the market was anticipating a cut in GST rates for term and health policies, analysts at JM Financial said, the exemption on savings-oriented life products came as a positive surprise.

The PAC said the inconsistencies highlight serious inefficiencies in the GST system's data validation and reconciliation processes, as GSTR-9 is auto-populated from GSTR-3B

A system that allows buyers to pay taxes directly to the government while paying would enhance trust, improve tax compliance, and accelerate tax collection