Indore: Tax expert points out anomalies in Input Tax Credit

Indore: For claiming Input Tax Credit (ITC) as per Section 16 (4) of GST Act, it is mandatory for the claimant to have major facts like the original copy of the valid tax-invoice with the buyer-receiver of the goods-service.

Deepak Bapat, senior advocate of Mumbai High Court, said this while addressing a webinar on Thursday. Bapat is also the vice president of National Association of Tax Practitioners. The webinar was organised under the joint auspices of Madhya Pradesh Tax Law Bar Association (MPTLBA) and Commercial Tax Practitioners’ Association (CTPA) Indore. The subject of webinar was ‘A Critical Analysis of Unjustified Provisions of Input Tax Credit under GST Law’. The members of both the organisations from Bhopal, Gwalior, Chhatarpur, Ujjain, Hoshangabad, Harda, Dewas, Dhar, Chhindwara, Rewa, Sehor, Balaghat, Mandsaur, Neemuch, Satna, Burhanpur, Singrauli joined online.
Bapat said that one should have documentary proof of receipt (delivery) of goods-services and also the payment to the supplier duly by cross-check or bank draft in respect of the goods purchased or service received. The supplier should upload the relevant information in his GSTR-1. If not, the buyer of such goods or services will not be able to receive an input tax credit.
He said "it is worth mentioning here that the buyer or recipient has no statutory control over the supplier. The recipient person who is a regular taxpayer, notgetting ITC due to default of supplier is an impractical and unjust system."

Earlier, AK Lakhotia and Yeshwant Lobhane deliver the welcome address. Amit Dave, was the moderator of the session.

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