Page 4 - Input Tax Credit

Insurers gave fake invoices when quizzed on tax credit claims: Officials

GST E-way bill is a document used to trace goods in transit to verify the authenticity of input credit claims

18% GST to be charged on battery charging for EVs: Karnataka AAR

Company setting up charging stations would get input tax credit, it rules

New GST rules on anvil; biz may have to explain discrepancy in ITC claims

The GST Council is likely to decide on a new rule in GST law under which businesses would be required to explain the reasons for excess input tax credit (ITC) claimed or deposit the amount with the exchequer, sources said. They said the Law Committee, comprising tax officers from Centre and states, has opined that where the ITC availed in GSTR-3B return exceeds the amount of ITC available in accordance with the auto-generated statement GSTR-2B by a specified threshold, the registered person may be intimated on the portal about such difference and be directed to either explain the difference or pay the excess ITC along with interest. The Committee has suggested that the provision should kick in if the difference is more than 20 per cent and more than Rs 25 lakh. GST Council is likely to take a final call on the recommendation of the Committee in its 50th meeting on July 11. Currently, businesses use taxes paid by their suppliers commonly referred to as ITC to offset their GST liabil

Check Form 26AS, reconcile with Form 16 before you file your tax return

Claiming excess tax credit in your return could trigger a notice from the tax authorities

GST Council meet: Ways to deal with tax credit mismatch on agenda

Cases to be scrutinised if difference is more than 20%, or over Rs 25 lakh

No ITC claim if vendors of suppliers of company don't pay GST: Punjab AAR

Experts disagree with ruling and say it could be reviewed at higher judicial forums

ITC can't be denied under GST even when post-supply discounts received: AAR

Value of supply would stand reduced, while tax liability remains as it is: Andhra authority

GST Council may vet CBIC's plan for additional validations in return filing

The GST Council in its meeting next month is likely to consider CBIC's proposal to introduce additional validations in the GST return filing system to check evasion and fake input tax credit (ITC) claims, a senior official said. In a special drive since November 2020, central agencies have detected fake ITC claims worth Rs 62,000 crore and arrested 776 persons, including professionals. The move to introduce certain validations in the return filing system is aimed at checking frauds and revenue loss. The Central Board of Indirect Taxes and Customs (CBIC) last week introduced validation and risk rating for GST registrations, as it looks to curb fake entities issuing fake bills just to claim ITC benefit and defraud the exchequer. The official said the strategy to go in for additional validation both at the time of registration and filing of return is aimed at eliminating tax evasion. "We are planning to introduce validations in returns filing system in a way such that the process does

GST council may mull steps to prevent fake generation of ITC: Official

GST Council in its meeting next month, likely to discuss measures to ensure strict provisions for preventing fake generation of Input Tax Credit, aiming to prevent tax evasion, a senior official said

Fake ITCs under GST regime huge challenge for govt: CBIC

The government has implemented validation measures and adopted mandatory physical verification on a risk-based approach

ICICI Pru refutes GST dept contention of tax liability due to ITC claims

ICICI Prudential Life Insurance on Wednesday said it has refuted the contention of the GST department with regard to tax liability due to input tax credit (ITC) claims. In a filing to stock exchanges, ICICI Prudential Life said it had last fiscal received an intimation from the Directorate General of GST Intelligence (DGGI) of estimated tax liability to the company. "The company has filed a response refuting the claim," it said. ICICI Prudential also clarified that it has not received any 'show cause notice with regard to the tax liability from DGGI' for evasion of taxes and/or unpaid dues and hence has not made any provision or contingent liability for the same in the financial statements for the year ended March 31, 2023. In the last fiscal, the Directorate General of GST Intelligence (DGGI) initiated a GST enquiry into certain expenses for which input GST credit had been claimed by the company. "The ongoing enquiries of DGGI is part of an investigation on an insurance industry-

Taxmen issuing notices to insurers for availing tax credit on fake invoices

GST officers have started sending notices to over a dozen insurance companies for availing input tax credit on the basis of bogus invoices in the last six years, sources said. These insurers have availed input tax credit (ITC) on the basis of invoices issued by intermediaries for providing services like advertising and marketing, although no such services were actually provided. As per the GST law, such availment of the ITC is not permissible as the supply of said service did not actually take place. As per the investigations by the Mumbai unit of the Directorate General of GST Intelligence, ITC of Rs 824 crore has been availed by 16 insurance companies. Out of this, the insurers had voluntarily paid Rs 217 crore. Sources said notices are being issued to these insurance companies for wrongful availment of ITC. Investigations revealed that these insurers were actually paying commission beyond IRDAI's permissible limit to their corporate agents in the garb of expenses related to ...

Disallowing input tax credit may increase CSR cost, impact beneficiaries

CSR activities were not treated as a business expenditure

GST officers to seek details of all invoices in case of ITC mismatch

The CBIC issued circular clarifying guidelines on recovery proceedings for the period 2017-18 and 2018-19

Leading insurance companies under GST scanner for alleged fake invoicing

Notices have also been issued to vendors of these companies

HC issues notice to Maharashtra GST dept for arrest over circular trading

Petition says arrest made despite a CBIC circular saying that no tax liability is there in circular trading

Chatroom: 'Drawback of IGST also available on re-export of imported goods'

This is subject to submission to Customs a certificate from the local GST officer that input tax credit has not been taken, and no refund of such ITC or IGST paid on the goods has been claimed

Run-up to Budget: Monetary threshold for GST offences may rise to Rs 25 cr

So far, the CBIC has made 960 arrests, including of 20 chartered accountants, under the current provision

GST wing of CBIC conducts tax inspections against insurance companies

A government source said the tax searches were about cases where the insurance companies had taken input tax credit in excess of what they are entitled to.

Transport services to civic bodies not exempt from GST in each & every case

Companies supplying vehicles to local bodies must prove that the underlying activities are exempt services, such as public health, in order to avoid paying tax, ruled Gujarat-based AAR