The article explains that under current GST scrutiny, the eligibility of Input Tax Credit (ITC) hinges on a consistent documentation trail rather than just invoices. Chartered accountant Nitin Kaushik outlines the types of records—purchase orders, GST invoices with e‑way bills, GRNs, bank statements, and GSTR filings—that authorities examine. He stresses that due diligence and alignment of all records can protect bona fide buyers from penalties.
ITC eligibility now hinges on a consistent documentation trail that collectively tells a coherent story of intent, movement of goods, financial settlement, and statutory reporting.
Authorities frequently issue notices under Sections 74 and 74A of the GST framework, focusing on the authenticity of transactions.
Expected documents include purchase orders, quotations, GST invoices with e‑way bills, goods receipt notes, bank payment proofs, GSTR‑1/3B disclosures, GSTR‑2B reconciliation, and matching ledger entries.
No, the law does not intend to penalise bona fide buyers who can show due diligence—receipt of goods, payment, and compliance checks—even if a supplier later defaults.
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The Hindu · 11 days ago
India’s GST rationalisation introduced a two‑tiered rate structure of 5% and 18% in September 2025, boosting domestic consumption. However, February 2026 saw a sharp rise in import IGST collections—up 17% YoY—driven by a weaker rupee and higher import costs, which may erode the price relief from the new rates.
Storyboard18 · 16 days ago
The Supreme Court of India ruled that Rooh Afza is a fruit drink under the Uttar Pradesh Value Added Tax Act, removing it from the residual category that had subjected it to a 12.5% VAT rate. The decision places the product under Entry 103 of Schedule II Part A, which historically attracted a 4% VAT rate for the assessment period 2008‑2012. The ruling emphasizes that tax classification must be based on statutory language, not food safety definitions.
DevDiscourse · about 1 month ago
The Internet and Mobile Association of India (IAMAI) has urged the Indian government to reassess the 5% GST applied to ride‑hailing services, arguing it harms driver income and consumer affordability. IAMAI calls for exemptions for SaaS‑based mobility services and highlights confusion from contradictory state rulings. The association seeks dialogue with the GST Council and Finance Ministry to create a more sustainable framework for the sector.
Whalesbook · about 1 month ago
India’s GST law imposes a 5% tax on ride‑hailing services, but the SaaS model used by aggregators creates ambiguity under Section 9(5) of the CGST Act. IAMAI has urged a review of the tax’s applicability, while Karnataka has exempted subscription‑based platforms such as Namma Yatri. The dispute raises uncertainty for aggregators, potentially leading to unexpected liabilities and affecting driver earnings and consumer affordability.
A2Z Taxcorp · about 1 month ago
India's GST Council has granted an exemption on individual life and health insurance premiums, removing the 18% GST. The decision, announced in a written reply on 5 February 2026, covers all individual policies including family floater plans. IRDAI confirmed that insurers have passed the benefit to policyholders without raising premiums.
A2Z Taxcorp · about 1 month ago
Experts at a CESS seminar in Hyderabad called for a balanced approach to India’s GST 2.0 rollout, emphasizing the need to simplify compliance while protecting revenue. They highlighted a proposed two‑slab rate structure of 5% and 18%, reforms to address inverted duty structures in textiles and fertilizers, and concerns over misuse of the three‑day registration approval window. The Trust‑First philosophy notes that 95% of taxpayers operate without intrusive scrutiny.
