Reversal of Input Tax credit / ITC - financial credit note is ...
Misuse of Credit Notes to Fraudulently Transfer ITC is Penalized u/s 132(b) for Reducing Invoice Value.
June 24, 2023
Case Laws GST AAR
Reversal of Input Tax credit / ITC - financial credit note is issued for part amount of invoice - the financial credit note shall not be used as a conduit to transfer input tax credit fraudulently, by raising an Invoice for a higher value to transfer ITC and then reducing the transaction value though financial credit note whereas the ITC transferred Is left unaltered. In case such a misutilisation of financial credit note is noticed at any point the same shall be liable for penalties under section 132(b). - AAR
View Source