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TMI BlogCESS ON CIGARETTESX X X X Extracts X X X X X X X X Extracts X X X X ..... A dealer who deals in sale of cigarettes has duly taken Input Tax Credit of 1) CGST 2) SGST 3) Compensation Cess (based on ad-valorem) And he was under impression that he need not show output liability on Additional Cess (based on quantity of cigarettes) as it is same in both cases of sale and purchase. Further he has not shown input / output w.r.t such additional cess in GSTR-3B . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Now in this case assuming FY 2018-19:- 1) Should he report this additional cess output liability now in February 2020? 2) Will he be eligible to claim ITC of such additional cess now? It is mentioned here that both input / output cess amount is same. For example:- additional cess on cigrattes is ₹ 4,170 per 1,000 pcs on both purchase and sales transactions. - Reply By Atul Rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hod - The Reply = He cant claim the credit but output tax needs to be paid. He should not report instead the same should be paid through DRC-03 . - Reply By KASTURI SETHI - The Reply = Hit by Section 16(4) of CGST Act . I agree with Sh.Atul Rathod Ji. - Reply By deepak gulati - The Reply = Sir, With due respect, we would like to draw your attention towards below mentioned illustratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n:- Lets suppose against an invoice dealer has availed input tax credit of CGST but inadvertently missed availing credit of SGST. In such case sec. 16(4) restriction still applies. P.S.- Sec. 16(4) talks about ITC in respect of any invoice.......... but in above case dealer has taken input of one component and missed input of other component within the same invoice. - Reply By KASTURI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SETHI - The Reply = In this scenario too, ITC will be hit by the time bar limit under Section 16 (4) of CGST . - Reply By YAGAY andSUN - The Reply = In our view also it is not available as per the limitation of time period u/s 16(4) . - Reply By Ganeshan Kalyani - The Reply = Sec. 16(4) states the taxpayers should claim credit of GST pertaining to a financial year upto the month of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... September following the end of that financial year. So, for F.Y.2018-19 , the time limit to claim credit was up to September, 2019. - Reply By deepak gulati - The Reply = Dear Sirs, We respect your opinion, Further we would like to draw your attention to the following points:- a) Sec. 16(2) of CGST Act starts with Notwithstanding Anything Contained in this section clause. This m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eans if these conditions are met registered person should be allowed Input Tax Credit. b) This additional cess is levied on the basis of no. of CIGARETTES i.e. its not levied on value addition basis. Please throw some light on this. - CESS ON CIGARETTES - Query Started By: - deepak gulati Dated:- 2-3-2020 Goods and Services Tax - GST - Got 7 Replies - GST - Discussion Forum - Knowledge S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... haring, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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