It has been a roller coaster ride for the economy with the advent of COVID-19 pandemic which is still not under control.

While speaking at the webinar on GST ITC – Litigations, Divergent Rulings and Way Forward” on Friday, 21st January 2022 from 02:00 pm to 5:30 pm on lots of hardships faced by the taxpayer under GST ITC., Mr. Pradeep Multani, President, PHD Chamber of Commerce and Industry, stated that the GST has been one of the landmark tax re- forms in the country and it is taking time to get stabilized to a large extent, that’s why, the business entities are still grappling with some issues and compliances required to be carried out.

Further, he said that the Input Tax Credit (ITC) being the backbone of GST is imperative to streamline seamless flow of credit and any impending issues under ITC must be resolved at the earliest for making GST a Good and Simple Tax. Entire GST law is based upon seamless input tax credit but in practice it is totally diverse scenario. Though availing of ITC forms one of the most critical activities for every business to settle its tax liability, however, claiming ITC is a mammoth task.

Mr. Bimal Jain, Chairman, Indirect Taxes Committee, PHD Chamber, stated that GST was introduced in the country to done away the multiplicity of taxes, remove cascading of taxes, double taxation and make GST law uniformly applicable from Kashmir to Kanyakumari.

The Object clause with preamble of 101 constitution amendment Act, 2016 which had introduced GST in the country has envisaged that we are going to have seamless flow of credit. But, irony is cascading of taxes continues in GST as five specified petroleum products remain outside of GST, and industry is demanding that Government should provide a roadmap by when they will include these five petroleum products into GST. Further, cascading continues as GST credit is not available on specified goods or services as provided under section 17(5) of the CGST Act, even though used or intended to be used in the course or furtherance of business viz. construction of immovable properties, promotional items, CSR expenses, etc.

CA. Jatin Harjai, highlighted the points related to Transitional Credits – Dispute and Way Forward, GSTN-related woes – Various Issues and Resolutions and Blocked ITC for constructions of immovable properties.

Tax experts who deliberated on the finer aspects of the GST ITC – Litigations, Divergent Rulings and Way Forward included CA. Tushar Aggarwal, Founder Partner, Tattvam Advisors; Mr. Narendra Singhvi, Joint, Partner, Lakshmikumaran & Sridharan; and Mr. Deepak Suneja, Partner, NITYA Tax Associates.

Mr. Pawan Arora, Co-Chair, Indirect Taxes Committee, PHD Chamber & Partner at Athena Law Associates, has concluded the session highlighting the point that no need to pay interest on ITC wrongly availed but reversed without utilizing citing recommendations made in the 45th GST Council Meeting and expected amendment in upcoming Union Budget 2022-23.

The Webinar concluded with an extensive discussion of more than 3.5 hours with the participation of more than 600 delegates. PHDCCI’s session was supported by A2Z Taxcorp; Nitya Tax Associates; Lakshmikumaran & Sridharan attorneys; Athena Law Associates; TATTVAM Advisor; and IRIS Legal.