The Concept of ITC is not fully new, as it existed in the pre-GST regime as well. No set-off amongst the various levies imposed by the Central Government and State Government. The provisions of the GST Act have widened the scope of ITC. The earlier provisions restricted the credit of SAD, only to manufacture of … Continue reading RATIONALE BEHIND THE INPUT TAX CREDIT

Section 2(63) of the CGST Act, 2017 defines Input Tax Credit (“ITC”)as the credit of input tax. ITC is available only to a registered person under GST and includes- •          IGST charged on import of goods; •          Tax payable under Section 9 of the CGST including tax paid under reverse charge mechanism; •          Tax payable under Section 5 of … Continue reading CONCEPT OF INPUT TAX CREDIT UNDER GST

In our previous blogs, we have discussed about the origin of GST Law in India and the rationale behind the implementation of GST in India. We have also discussed the earlier Indirect Tax regime wherein various taxable events were present for different levies depending upon the nature of tax. The taxable events were also different … Continue reading BROAD FRAMEWORK OF GST

Tax policy plays a major role in the Indian economy through its impact on efficiency and equity. As discussed in our previous blogs that the previous indirect tax regime created various complexities, which forced the Government to overhaul the earlier indirect tax system and introduce a new tax system throughout India with an aim to … Continue reading NEED OF GST