Over this video lets explore the rules 42 and 43, how it works, and ignorance of taxpayers for which potential consequences would in store. Potential litigations are in store.
The recent GST reforms effective September 22, 2025, have significant implications for department store vendors who hold goods in stock that have transitioned from taxable to exempt status. This analysis examines the Input Tax Credit (ITC) reversal requirements, compliance obligations, and practical implementation strategies based on current notifications, GST Council recommendations, and official FAQs. Executive Summary and Key Findings Department store vendors with goods in stock that have become exempt under the new GST regime face mandatory ITC reversal obligations under Section 18(4) of the CGST Act, 2017. The transition requires immediate attention to avoid penalties and ensure compliance with the revised framework effective September 22, 2025. Critical Action Required : Vendors must calculate and reverse ITC on exempt stock in their September 2025 GST returns, as the exemption triggers Section 18(4) provisions that mandate reversal when "goods or services supplied b...
Background: Specified goods on which "registered brand or brand in respect of which an actionable claim or enforceable right in a court of law is available" was one of the most spoken challenges at the inception of GST regime as it was attracting 5% GST especially in case of pulses, cereals like rice, wheat, and flour (aata), etc. Later on this scenario was further evolved vide Notification No.28/2017 Central Tax Rate dt.22.09.2017 wherein if you file an affidavit for foregoing an actionable claim or enforceable right on a brand name, it will not be taxed under GST. This created a mad rush among those manufacturers and traders to opt for it, and to stay away from the tax net. It is learnt that the Group of Ministers (GoM) reviewing the GST rates in this context has decided to remove exemption for packaged food items, if sold under unregistered brands. The GoM’s decision follows Tripura High Court’s judgement wherein the court upheld the tax demand on t...
The lifeline of the GST framework lies in the context of Input Tax Credit (ITC), moreover, on the principle of eligibility — a principle that becomes even more nuanced when businesses undertake expansion projects. The landmark case of Safari Retreats has served as a turning point, bringing clarity to the treatment of ITC in scenarios involving blocked credits. It has illuminated the judicial interpretation around the eligibility of ITC, especially with respect to immovable property. A significant development is that the Apex Court has broadened the definition of “plant” to include land, buildings, machinery, apparatus, and fixtures — all seen as instrumental to the operation of a trade or business undertaking. The Court further explained that a plant encompasses the totality of facilities available for production or service, including the physical infrastructure of an institution. This interpretation underlines that where such components are essential to a business’s functioning, ...
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