Input Tax Credit

From easier input tax credit claims to automated registration and a ₹40-crore cap on penalty-only appeals, the proposed changes seek to reduce compliance friction.

The GST Council's changes to export definitions and refund rules are expected to benefit IT firms, consulting companies and GCCs by reducing tax disputes and working capital costs

The GST Council's decision to allow input tax credit on employee group health and life insurance is expected to reduce coverage costs for employers, particularly MSMEs

Businesses will be able to claim credit on employee insurance, telecom towers, pipelines and certain free samples, while refunds will be widened to input services and machinery

As the GST Council prepares to meet, businesses want the next phase of reform to focus on getting stuck credit moving, reducing repeated scrutiny and making compliance simpler

Allowing employers to claim ITC on GST paid on group health and life insurance could lower effective costs, address a tax disparity and encourage wider employee coverage

From raw materials and rent to motor vehicles and construction, businesses can claim ITC on eligible expenses, but GST rules block credit for several categories

Insurance, repairs and servicing may qualify; EVs could get matching tax treatment

The refund for capital goods is likely to be implemented from April 1, 2027. Refunds for input services are likely to take effect this year itself, once council approves

The GST Council is likely to consider sweeping process reforms on Wednesday to make tax compliance easier for businesses, including allowing small e-commerce sellers to use platform warehouses for GST registration, protecting genuine buyers' input tax credit and reducing low-value litigation, sources said. The proposals, part of the GST 2.0 process reforms, seek to simplify registration and return filing, make goods movement more predictable and reduce disputes between taxpayers and the tax department. One of the proposals seeks to allow small sellers using e-commerce platforms to treat the platform's warehouse as their registered place of business in states where they do not have their own premises. A seller would need a genuine presence in one state, where physical verification and Aadhaar authentication would be completed, and registrations in other states could be obtained with the consent of the e-commerce platform without further tax-officer involvement. The move could enable

Rajasthan's State Tax Department detected potential tax liability of ₹22.79 crore at over 25 establishments during its crackdown on suspected GST evasion and fraudulent ITC claims.

Finance Minister Nirmala Sitharaman says the GST Council will discuss e-invoicing, input tax credit rules and other process reforms during its October 7 meeting

Centre is discussing the issue with states amid industry concerns that denial of input tax credit on construction of own-use assets raises the cost of large investments

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