- India Inc is facing GST demand notices for claiming blocked credits
- GST authorities are issuing notices in a time bound manner
- Industry fears that the first adjudicating authority will confirm the demand, leading to additional litigation costs
- The matter of blocked credit is being heard by the Supreme Court
- Several industry players have raised the issue before High Courts and the Supreme Court
- The credits are disallowed for works contract services, other services, and goods used for construction of an immovable property
- Revenue believes that the credit must be denied as the construction of an immovable property is not subject to GST, while the industry believes the credit cannot be denied as the objective is to render taxable services.
Source: cnbctv18.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
