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India: Input tax credit, pre-fabricated structure; amnesty for pre-GST liabilities

India: Input tax credit, pre-fabricated structure

The KPMG member firm in India has prepared reports about the following tax developments (read more at the hyperlinks provided below).


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  • Pre-fabricated structure not eligible for input tax credit, since immovable property: The Authority for Advance Ruling, West Bengal, denied a request for an input tax credit with respect to “inward supplies” used in the construction of a pre-fabricated warehouse structure. The ruling concludes that the pre-fabricated warehouse structure was immovable property, and thus ineligible for an input tax credit. Read a February 2019 report [PDF 544 KB]

  • Amnesty program, resolving pre-GST liabilities in Maharashtra state: The Maharashtra state government approved an amnesty program for taxpayers to settle their state tax disputes arising before the goods and services tax (GST) measures were in effect. The proposed GST amnesty program would apply and be available for two periods—first, for the period up to 31 March 2010, and second, from 1 April 2010 to 30 June 2017. Read a February 2019 report [PDF 698 KB]

  • Form C and products used in manufacturing process: The value added tax (VAT) department of the Maharashtra state government withdrew prior guidance (circular No. 47T of 2017) that had restricted the issuance of “Form C.” Previously, Form C was issued with respect to products that were used by the taxpayer in the manufacture of its eligible goods. The change in procedure reflects the holding of a high court decision, in which the tax authorities were directed by the court to issue Form C to a taxpayer involved in the manufacture of goods specified in the central state tax (CST) registration certificate. Read a February 2019 report [PDF 826 KB]

  • When do goods clear customs vs. when are they subject to sales tax: The Bombay High Court held that the term “crossing the customs frontiers of India” means that presenting a bill of entry for domestic consumption or for warehousing indicates that the imported goods have been cleared for customs purposes and, accordingly, have crossed the customs frontiers. In the instant case, because an agreement for the sale of the goods was executed before the goods were cleared for domestic consumption—but after the filing of a bill of entry for warehousing the goods—the sale was a “local sale” and thus was subject to sales tax. Read a February 2019 report [PDF 832 KB]

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