GST was said to be the biggest game changer for the Indian Economy. After implementation of this law, we have seen many ups and down in the Economy which inter-alia include changes in GST as well. The present economic position of the Country is on doldrums. The same is quite apparent and the Hon’ble FM has been trying to push the economy since last 5-6 months. But the present global crisis on account of outbreak of COVID-19 has further derailed the Indian economy. In such a situation it has become really difficult for the common citizens to comply the law in letters and spirit.
Input Tax Credit (ITC) is the heart and soul of the GST Law. The entire gamut of the GST law revolves around ITC. Right from the procurement of supply till the final payment thereof to the vendor the Govt. has put so many conditions and restrictions for availment of ITC. Some of the conditions are practically, contractually and legally not possible to fulfil. One such condition is that in order to avail the full ITC, the receiver of supply should make payment to the vendor within 180 days from the invoice date. In other words, if this condition is not meet out the service recipient in such a situation needs to reverse the ITC availed and pay the same along with interest. Though the facility of re-credit of such facility on making payment finally is provided but that seems to be an additional burden and a futile exercise. In this article the authors have made an attempt to examine the need and relevance of such stipulation in the context of present era.
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