Eligibility as ITC

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..... Dear sir, We got a supply of goods contract from APCPDCL (Electricity board), which supply got delayed, penalty imposed by the APCPDCL on that IGST was collected, Is supplier will be entitle to take ITC of IGST paid on penalty. please advise. Thanks in advance. - Reply By KASTURI SETHI - The Reply = Such a situation is covered under Schedule-II in Clause 5 (e) but it will not be litigati .....

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..... on-free. - Reply By Bharat Cholleti - The Reply = Thanks for replying the query, In which way there will be litigation sir, as it is already notified as service under Sch II. Pls explain - Reply By KASTURI SETHI - The Reply = The word,'penalty' is not mentioned specifically in Clause 5 (e) of Schedule-II . - Reply By Ganeshan Kalyani - The Reply = I agree with the views of Sr .....

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..... i Kasturi Sir. - Reply By Shilpi Jain - The Reply = The question I understand is not whether there is GST liability. The query is whether the SUPPLIER is eligible for ITC of tax paid on penalty.. As far as the SUPPLIER is concerned, once tax is assessed in the the hands of APCPDCL and it has been paid tax, credit should be eligible to the supplier. Thereby, even if tax is not liable on the tra .....

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..... nsaction as per the clarification in circular 178 and still it is paid, in my view credit should not be denied. - Reply By Shilpi Jain - The Reply = Alternatively, the supplier can ask APCPDCL to refund the GST collected from supplier in the light of the circular 178 - Eligibility as ITC - Query Started By: - Bharat Cholleti Dated:- 18-10-2022 Goods and Services Tax - GST - Got 6 Replies - .....

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..... GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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