Dealer delight! Gujarat High Court strikes down GST provision as unconstitutional – Financial Express

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  • Last Updated on 27 October, 2020

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Shubham Mittal, DGM-GST of Taxmann, said:
 
“As the GST Act restricts the input tax credit if underlying goods are not used for supply of output goods or services, the government might verify that the credit has not been claimed in respect of taxes paid on the dead, obsolete stock or which is otherwise not useable in output supply,” 
 
 
The government had argued in the court that the provision to restrict the scope of availing of credit was to ensure that first stage dealers do not take any undue advantage of such benefit and also to accommodate administrative convenience. The order, however, said these reasons existed even in the earlier regime, and hence wasn’t a sufficient reason for the restriction in the GST.

 
 

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