The article explains that while GST was designed to eliminate cascading tax and enable seamless input tax credit (ITC), the reality has become a compliance-driven process. ITC eligibility now hinges on invoice matching, GSTR‑2B reconciliation, Rule 36(4), Section 16(2)(aa) restrictions, and the Invoice Management System (IMS), making credit availability conditional on supplier filings and compliance data. Businesses face working‑capital pressure and litigation due to delayed or denied ITC.
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GSTZen · 2 days ago
The article explains that for services, GST becomes payable immediately upon receipt of an advance, while for goods, advance receipts are exempt under Notification No. 66/2017-Central Tax and GST is due only when goods are supplied. It also details the required receipt and refund vouchers and how to calculate GST on inclusive and exclusive advances.
Economic Times · about 1 month ago
The Supreme Court has upheld a 28% GST on online gaming, applying it retrospectively to curb unregulated wagering. The ruling targets real‑money games and aims to aid investigations into money laundering. The decision marks a significant shift in India's approach to digital gambling.
Economic Times · about 2 months ago
The Supreme Court dismissed Uttar Pradesh’s attempt to levy a 21% state VAT on natural gas transported from Andhra Pradesh to Uttar Pradesh, ruling the transaction is an interstate sale governed by the Central Sales Tax Act. The decision upheld a 2012 Allahabad High Court judgment that quashed UP’s assessment orders against Reliance Industries, Tata Chemicals and IFFCO. The ruling confirms that gas transported through common pipelines remains an interstate sale even when co‑mingled.
Aviation Jeta · about 2 months ago
The Delhi government has lowered the VAT on Aviation Turbine Fuel (ATF) from 25% to 7% for airlines operating in the capital. The reduced rate will apply for an initial six‑month period, providing relief to airlines and passengers amid rising fuel costs.
Republic World · about 2 months ago
The Delhi government has reduced the VAT on aviation turbine fuel (ATF) from 25% to 7% effective 16 May 2026. The change applies to airlines purchasing fuel at Delhi airports, providing significant cost savings for the aviation sector.
Frontline · 3 months ago
India’s GST, launched in 2017, was intended to unify indirect taxes and balance fiscal power between the Union and States. However, successive rate cuts, the expiration of the compensation guarantee in 2022, and the 2025 three‑tier reform have eroded state revenue, deepening fiscal dependence on the Union.
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Key Takeaways
Claiming ITC now requires matching invoices, GSTR‑2B reconciliation, compliance with Rule 36(4) and Section 16(2)(aa), and use of the Invoice Management System (IMS).
If suppliers fail to file GSTR‑1 within the prescribed time, the ITC does not appear in the recipient's GSTR‑2B, leading to delays or denial of credit.
Rule 36(4) restricts ITC on certain supplies, requiring compliance with specific conditions and limiting the credit that can be claimed.
IMS is a system that automates invoice matching and ensures compliance for ITC claims, making it a mandatory tool for businesses to claim credit.
Primary source
Read the full article at A2Z TaxcorpThis summary was published on VATfaqs.com on 3 July 2026. It relates to VAT developments in India. The original source is A2Z Taxcorp.
