Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 
Discussions Forum
Home Forum Goods and Services Tax - GST This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

← Previous Next →

CESS ON CIGARETTES, Goods and Services Tax - GST

Issue Id: - 116086
Dated: 2-3-2020
By:- deepak gulati
CESS ON CIGARETTES

  • Contents

A dealer who deals in sale of cigarettes has duly taken Input Tax Credit of

1) CGST

2) SGST

3) Compensation Cess (based on ad-valorem)

And he was under impression that he need not show output liability on Additional Cess (based on quantity of cigarettes) as it is same in both cases of sale and purchase. Further he has not shown input / output w.r.t such additional cess in GSTR-3B.

Now in this case assuming FY 2018-19:-

1) Should he report this additional cess output liability now in February 2020?

2) Will he be eligible to claim ITC of such additional cess now?

It is mentioned here that both input / output cess amount is same.

For example:- additional cess on cigrattes is ₹ 4,170 per 1,000 pcs on both purchase and sales transactions.

Post Reply

Posts / Replies

Showing Replies 1 to 4 of 4 Records

1 Dated: 2-3-2020
By:- Atul Rathod

He cant claim the credit but output tax needs to be paid. He should not report instead the same should be paid through DRC-03.


2 Dated: 2-3-2020
By:- KASTURI SETHI

Hit by Section 16(4) of CGST Act. I agree with Sh.Atul Rathod Ji.


3 Dated: 4-3-2020
By:- deepak gulati

Sir,

With due respect, we would like to draw your attention towards below mentioned illustration:-

Lets suppose against an invoice dealer has availed input tax credit of CGST but inadvertently missed availing credit of SGST. In such case sec. 16(4) restriction still applies.

P.S.- Sec. 16(4) talks about ITC in respect of any invoice.......... but in above case dealer has taken input of one component and missed input of other component within the same invoice.


4 Dated: 4-3-2020
By:- KASTURI SETHI

In this scenario too, ITC will be hit by the time bar limit under Section 16 (4) of CGST.


1

Post Reply

← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map || ||