GST Input Tax Credit

GST Input Tax Credit has long been recognised as a comprehensive and authoritative treatise on the nuances of Input Tax Credit (ITC) under the Goods and Services Tax regime. It has been updated to reflect all changes made by the Finance Act 2025. This Edition is an indispensable resource for readers seeking clarity, insight, and practical know-how on ITC mechanisms in GST. This book meticulously covers every stage of the ITC journey?from understanding fundamental concepts of GST to specialised issues like input distribution, blocked credits, refunds, and ITC utilisation. It clarifies complicated legislative provisions through systematically organised chapters, case laws, and regulatory references.This book is intended for the following audience:

Tax Professionals & Practitioners ? Chartered Accountants, Cost Accountants, Company Secretaries, Advocates, and tax consultants who advise on or deal with compliance, litigation, and advisory in GST
Businesses & Corporates ? Finance, taxation, and accounts teams in micro, small, medium, and large enterprises that regularly interact with Input Tax Credit claims and procedures
Government Officials & Regulators ? Departmental personnel who administer GST laws, review ITC claims, conduct audits, and deal with cross-border transactions
Any Individual or Entity Dealing with GST ? Especially those needing clarity on partial credits, blocked credits, or refunds arising from exports or inverted duty structures
Academicians & Students ? Faculty members, law students, and business students specialising in taxation and looking for in-depth coverage of the ITC framework

The Present Publication is the 15th Edition | 2025, amended by the Finance Act 2025. This book is authored by V.S. Datey with the following noteworthy features:

[Comprehensive Treatment of ITC] Provides a 360-degree view, starting with the basics of GST, culminating in advanced ITC topics like Input Service Distributor (ISD) and cross-utilisation of credits
[Updated Content] Reflects the latest statutory changes, clarifications, and notifications, including all amendments introduced by the Finance Act 2025
[Practical Insights] Illustrations, case laws, and problem-solving examples that show how provisions work in practice
[Step-by-step Guidance] Each procedure?registration, claiming ITC, reversal scenarios, refunds?is explained in a methodical manner
[Extensive Appendices] Contains relevant sections from the CGST Act, IGST Act, and CGST Rules; includes clarifications, notifications, and circulars that provide deeper context and easy referencing
[Easy Reference Tools] A detailed table of contents, exhaustive subject index, and ?Acronyms in GST? list to help navigate complex topics quickly

The coverage of the book is as follows:

GST Overview
Fundamental structure of GST, types of taxes (CGST, SGST/UTGST, IGST), dual GST framework, and the concept of destination-based taxation
Highlights of GST Law
Definitions of goods and services, taxability rules, place of supply, time of supply, valuation, and procedures for registration/invoice generation
VAT Concept & Application in GST
Historical background, evolution from VAT to GST, and how credit mechanisms have transitioned to the current GST system
Detailed ITC Provisions
Definition of Input Tax
Conditions to avail ITC and documentary requirements
Time limits for claiming ITC
Blocked credits (e.g., motor vehicles, works contract services, personal expenses)
Partial credit when taxable and exempt supplies co-exist
ISD (Input Service Distributor)
Rules and mechanisms for distributing input service credits across different branches or registrations, including recent changes effective from 1-4-2025
ITC Utilisation
Understanding Electronic Credit Ledger (ECL) and Electronic Cash Ledger (ECL)
Sequence of credit utilisation across CGST, SGST/UTGST, IGST, and restrictions imposed by law
Interest liabilities for delayed payments and wrong availment
Exports & Imports
Zero-rated supplies, refunds on exports, LUT/Bond mechanism
Restrictions on claiming IGST refunds when inputs are procured under concessional rates or exemption schemes
Special provisions for SEZ units/developers, deemed exports, duty-free shops, high seas sales, and bonded warehouses
Refund Mechanisms
Conditions and procedures for refund of unutilised ITC, excess tax, inverted duty structure
The doctrine of unjust enrichment
Handling deficiency memos, showing cause notices, and using relevant forms (RFD-01, RFD-06, RFD-07, etc.)
Each chapter integrates legislative references with administrative guidance, ensuring that the explanation aligns with the law and practical procedures

The structure of the book is as follows:

Foundational Chapters (Chapters 1 & 2) ? Provide a broad overview of GST, definitions, and the legal framework to set the context for ITC
Transitional & Core ITC Chapters (Chapters 3, 4 & 5) ? Dive deep into the specifics of Input Tax Credit, blocked credits, partial credits, and how ITC is impacted when a business engages in both taxable and exempt supplies
Special Topics (Chapters 6 & 7) ? Cover Input Service Distributor (ISD) provisions and the detailed process of utilising ITC for payment of output taxes, including the interplay of different tax heads
Exports & Imports (Chapter 8) ? Explains zero-rated supplies, refund options, and specialised import-export scenarios such as high seas sales, bonded warehouse transactions, and merchant trade
Refund Procedures (Chapter 9) ? Offers a structured approach to claiming refunds, dealing with inverted duty structures, and the correct procedure for obtaining IGST refunds on exports
Appendices ? A robust set of appendices (Sections of CGST & IGST Acts, relevant CGST Rules, clarifications, and circulars) to facilitate cross-referencing and deeper research
Subject Index & Acronyms ? A thorough index and a ready reference for acronyms used in GST law ensures that readers can find topics quickly and understand key terminologies without confusion