- Home
- General Issues
- Input Tax Credit
- ITC on blocked credit
- Whether input tax credit is allowed on expenses incurred for employees ?
Whether input tax credit is allowed on expenses incurred for employees ?
Issue Favourable to Tax Payer ?:- yes
Held - As regards the ruling of the AAR, we observe that the impugned ruling is lucidly contrary to the provision of the CGST Amendment Act, 2018, which clearly says that the ITC in respect of the health services are available to a registered person subject to the condition that the employer i.e. the registered person, is under obligation to provide such health services to its employees in terms of the provisions of any law for the time being .....
Issue Favourable to Tax Payer ?:- no
Held - In this case the applicant has their own in-house hospital for use by the employees, retirees and their dependents. This is a free center where all the services and medicines are provided free to the employees. No consideration is charged from the employees for this. This provision of free medical care is mandatory as per the Regulations made under Major Ports Act. These are mandated to be provided to the applicant's employees, their de.....
Issue Favourable to Tax Payer ?:- no
Held - Qus.2(c) whether Input Tax Credit on Medicines purchased by the hospital maintained by our organization and used for treatment of factory employees and their dependents. Expenditure on maintenance, upkeep and other activities relating to such hospital shall be available to them.
Legal Submission by Department :- The hospital/ dispensary maintained by the applicant for its employees and their depen.....
- Whether reimbursement of expenses is leviable to GST?
- Whether input tax credit is admissible if invoice/debit note does not appear in Form GSTR-2A/2B or tax is not paid by supplier ?
- Whether marketing and sales promotion services to customers located outside India is intermediary or export of services ?
- Whether order / show cause notice is valid if passed without pre-show cause notice consultation or GST DRC-01 (summary SCN) or GST DRC-01A (tax intimation notice) ?
- Whether recovery proceedings can be initiated if assessee is willing to file an appeal ?
- Whether input tax credit can be transferred to the transferee entity in case of an inter-state business transfer ?
- Whether interest is payable for the period during which the reply to the deficiency memo remains pending ?
- Whether combined show cause notice can be issued covering multiple financial years ?
- Whether tax can be recovered by Department without prior intimation in Form DRC-01D ?
- Whether a penalty equal to 200% of the tax amount can be demanded in case of detention or seizure of goods ?
