The term “Input Tax Credit” assumes significant importance in the arena of indirect taxation. Let us zero in on our analysis on this topic under GST regime. “Input tax” means the GST Taxes (CGST, SGST, IGST) charged on any supply of goods or services or both made to a registered person in the course or furtherance of his business and includes such tax payable on reverse charge basis— but excludes tax paid under composition levy.
Aryan, gasping and panting, stumbled inside the office of his friend, Kushal.
“Hey, Aryan! What a surprise – ” Kushal – a CA by profession –began to greet, but stopped short at the harried and hassled look on his friend’s face. “Is everything fine, Aaryan?”
“Nothing’s fine!” Aaryan sounded agitated as he plonked himself down on the chair, “The word ‘fine’ doesn’t fit aptly for us businessmen! But yes, if we talk about punishable “Fines”, they are made for us!” he finished with sarcasm.
One nation – one tax, is surely a game changer. As the Indian taxation scenario revamps, a singular tax regime promises to eradicate complexities, stemming from a bunch of indirect taxes and manual filing. To give you a ready reckoner, here’s an exclusively crafted, quick guide to the Goods and Services Act, commonly known as GST.
One of the significant changes under the GST regime after subsuming all the indirect taxes is the presentation of the concept of supply under GST. In the old indirect tax regime, taxes were charged on various points and occasions; for instance, on account of goods, taxes were charged at the time of production, transport, supplying, … Read moreTime, Place and Value of Supply