Tag: Input Tax Credit

ArticleGST Article

Claims and dues not included in the resolution plan approved by the NCLT stand extinguished

byCA Bimal Jain

The GSTAT Delhi in the case of DGAP held that once a resolution plan is approved by the NCLT under the IBC, 2016, all claims and dues not included in the resolution plan stand extinguished, and consequently, the Resolution Applicant cannot be held liable for unquantified ITC benefits not passed on by the previous entity under Section 171 of the CGST Act, 2017. The anti-profiteering proceedings against Puma Realtors Pvt Ltd were therefore closed.

ArticleGST Article

ITC can’t be denied if disclosed in GSTR-9 but missed in GSTR-3B due to inadvertent error

byCA Bimal Jain

The Hon’ble Calcutta High Court in the case of Laxmi Ghosh held that the Appellate Authority failed to provide reasons for rejecting the Petitioner’s claim to set off IGST Input Tax Credit declared in the annual return GSTR-9 against the tax demand when the same was inadvertently missed in the monthly returns GSTR-3B, and set aside the Appellate Authority’s order for non-consideration of the ITC claimed in GSTR-9 and inadequate reasoning, remanding the matter for fresh adjudication.

ArticleGST Article

Supreme Court to decide Denial of ITC Due to Seller’s Registration cancelled retrospectively

byCA Bimal Jain

The Hon’ble Supreme Court in Roshan Sharma v. Deputy Commissioner of Revenue, State Tax &Anr. [SLP(C) No. 31296/2025, order dated November 10, 2025] held that the question of whether Input Tax Credit (ITC) can be denied solely on the ground that the GST registration of the seller has been cancelled—despite the registration being valid on the date of transaction—requires consideration.

ArticleGST Article

ITC admissible for capital goods and related services used to lay electricity transmission infrastructure outside the factory

byCA Bimal Jain

The Gujarat AAR in the matter of Alleima India Pvt Ltd [Advance Ruling No. GUJ/GAAR/R/2025/44 GST, order dated October 16, 2025] held that input tax credit (ITC) is available on capital goods and related services used for laying underground cables and transmission equipment from the DISCOM substation to the factory premises, even if installed outside the factory premises, subject to the conditions in Section 16 and exceptions in Section 17(5) of the CGST Act.

ArticleGST Article

Invoice value applies for supply to related persons eligible for ITC

byCA Bimal Jain

The Andhra Pradesh AAR in the matter of Sri Lakshmi Ganesh Cement and Iron General Stores held that for supply of cement and iron to unrelated persons, the transaction value as per Section 15(1) of the CGST Act, 2017 applies; for supplies to related persons eligible for full input tax credit, the invoice value is deemed value of supply under Rule 28 of the CGST Rules, 2017; further, the registered person providing transportation services to unregistered persons is not liable to pay GST on the transportation charges, as such services are exempt under Serial No. 21A of Notification No. 12/2017-CT (Rate), as amended.