Tag: Kerala HC

ArticleGST Article

Does claiming depreciation on a portion of the tax component bar under the GST law

byCA Bimal Jain

The Hon’ble Kerala High Court, in the case of M/s South Indian Bank Ltd. examined the prevalent connection between Input Tax Credit (ITC) and Income Tax depreciation, particularly considering the case of banking industries, Financial Companies, Non-Banking Financial Companies (NBFCs). The Court addressed this issue in the specific context of banking companies, financial institutions, and NBFCs, and held that claiming depreciation on the unavailed portion of the tax credit  does not disentitle the assessee from claiming ITC on the remaining portion, where no depreciation has been claimed.

ArticleGST Article

ITC Reversal Against Bona Fide Recipient Impermissible Without Prior Proceedings Against Defaulting Supplier

byAdmin

The Hon’ble Kerala High Court in the case of K.V. Joshy & C.K. Paul held that Show Cause Notice issued under Section 73 seeking ITC reversal from bona fide recipient is quashed as no prior proceedings were initiated against suppliers despite statutory mandate under Section 42 of the CGST Act to first communicate discrepancies to both parties.