 "Several global firms missed the July 7 deadline of depositing tax, expecting that the Indian government might review the levy")
The Gujarat High Court has allowed a footwear company to claim credit for taxes paid on service inputs under the goods and services tax (GST) regime, likely signalling relief for ecommerce majors such as Amazon, Flipkart and Urban Company.
The court struck down an explanation given under Rule 89(5) under the Central GST Act, which the government used to deny claim on input tax credit on services in case of inverted duty structure. The structure means that raw materials draw higher taxes than final products.
The government brought in the rule in 2018 by amending one that allowed all kinds of credits
