Restrictions on Availment of ITC: The Saga continues

Rahul Jain & Rohan Muralidharan – [2022] 135 taxmann.com 45 (Article)

On the GST front, it was noted in the Budget Speech that GST collections for the month of January 2022 has been the highest since its inception. One of the primary reasons for the same is said to be “the right balance between facilitation and enforcement has engendered significantly better compliance.”

In furtherance of the above cause, one of the important amendments in the Finance Bill 2022 is the introduction of additional conditions and restrictions for availment of the Input Tax Credit (ITC) by way of proposed insertion of Section 16(2)(ba) read with Section 38 of the CGST Act, 2017. In this article, the authors discussed the newly proposed provision and impact of this amendment.

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