Claim of Input Tax credit, Provisional Acceptance, Matching, reversal and reclaim of input tax credit or reduction in output tax liability Q 1. Whether the registered taxable person shall be entitled to take credit of input tax credit as self-assessed in the return and shall be credited to Electronic credit ledger on final basis or Provisional basis? Ans. The registered taxable person shall be entitled to take credit of input tax credit as selfassessed in the return and shall be credited to Electronic credit ledger on provisional basis. Q 2. Whether Provisional Input Tax credit can be utilized against any tax liability? Ans. The provisional Input Tax credit can be utilized only against the self-assessed output tax liability and not against any other tax liabilities. Q 3. Why is it required to file GST tax returns and payment of GST tax by supplier required for sanctioning Input Tax Credit to recipient? Ans. The supplier’s GST tax invoice and subsequent entry of such tax in his returns has to match with the recipient’s claim for Input Tax Credit. Such payment of GST by supplier has to be confirmed for sanctioning Input Tax Credit finally. Q 4. What happens if there is mis-match of supplier’s tax payment with returns and recipient’s claim for Input Tax credit? Ans. If the details of recipient’s claim for Input Tax Credit and the details of returns and tax payment of supplier don’t match, such Input Tax Credit shall be added to output tax liability in the hands of receiver. The recipient shall be eligible to reduction if the supplier declares/ rectifies the invoice within the maximum time limit specified. Q 5. Whether interest is leviable in the hands of the recipient in the event of mismatch of credit? Ans. Yes, interest shall be leviable from the date of availing the credit till the corresponding additions to be made. In case the supplier pays the output tax with interest then the interest shall be refunded to the recipient and the same will not exceed the interest as paid by supplier. Q 6. Whether the Input Tax credit as credited in Electronic Credit ledger can be utilized for payment of Interest, penalty, fees? Ans. No, the Input tax credit as credited in Electronic Credit ledger cannot be utilized for payment of Interest, penalty, fees
Transfer of Input Tax Credit
Q 7. How will the credit of IGST be adjusted against CGST? Ans. In case of utilization of IGST credit against the CGST payable, IGST collected will reduce from IGST Account and will be transferred to CGST Account by Central Government. Q 8. How will the credit of IGST be adjusted against SGST? Ans. In case of utilization of IGST credit against the SGST payable, IGST collected will get reduced from IGST Account and balance will be transferred to SGST Account by State Government. Recommended Articles
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