Seamless flow of GST credit is missing in GST

No. PR- 055 June 11, 2021 New Delhi Seamless flow of GST credit is missing in GST The Indirect Taxes Committee of PHD Chamber organized the webinar on GST Input Tax Credit – Game Changer Vaccine for Trade and Industry on Friday, 11th June 2021 from 02:00 pm to 5:00 pm wherein it was discussed at length, WHY Seamless flow of credit, which Soul of any business, is missing in GST. Giving the presidential address, Mr. Sanjay Aggarwal, President, PHD Chamber urged the people to follow the Covid Appropriate Behaviour to not let the third wave create havoc. He appreciated the Government of India for taking remarkable steps to make the life-saving materials available in the country from across the globe. He observed that Input Tax Credit is a major matter of concern for taxpayers incurring COVID-19 related expenditure as there are doubts on availing ITC on such expenditure. Mr. Rajeev Talwar, Former President, PHD Chamber suggested that GST credit should be allowed on constructions of immovable properties, which are subsequently Leased as Commercial Buildings and chargeable to GST so as there is no loss of credit in the supply chain. He observed that denial of Input Tax Credit is causing cascading of taxes. He also suggested that all real estate constructions should be allowed to charge either 1% or 5% for affordable housing or non-affordable housing with no ITC, should also be allowed with an another option of GST @ 12% with GST ITC, so that credit chain is not broken and costs of constructions becomes competitive for the builders.. Mr. Bimal Jain, Chairman, Indirect Taxes Committee said that GST was introduced in July, 2017 for seamless flow of credit to be allowed for whole of the supply chain PAN India and termed as “One Nation One Tax One Market, but, it is not as smooth as talked about. GST Credit is blocked on certain Inputs and Input Services even though in the course or furtherance of business viz. Contradictory Rule 36(4), 86A, 86B, Credit denied for fault of supplier’s non-payment of taxes, Goods distributed as Sales promotion but denied as being Gift, CSR Expenses, complication of matching ITC with GSTR 2A or 2B, etc. It needs simplification for the Businesses to avail credit with seamless flow so as GST termed as Good and Simple Tax. The Government must try to simplify the process of availing credit for all businesses. Tax experts who deliberated on the finer aspects of the Input Tax Credit included Mr. Rakesh Garg, Senior Partner, SSAR & Associates; Mr. Jatin Harjai, Leader, JHA Legal; Mr. Tushar Aggarwal, Partner, TATTVAM Advisors and Dr Gaurav Gupta , Advocate. The Webinar concluded with an extensive discussion of more than 3 hours with the participation of more than 800 delegates. Recording Link- End Media Division PHD Chamber of Commerce and Industry