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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News On Air · 2 days ago
India's Delhi government has reduced the VAT on aviation turbine fuel from 25% to 7%. The concessional rate will apply for six months, starting from 19 April 2026.
LiveLawBiz · 3 days ago
India: The Gauhati High Court has ruled that Hawkins Cookers Ltd. must pay an additional 8.5% VAT on the original sale price of pressure cookers, confirming the 12.5% rate applied before 2010. The court rejected the company's attempt to compute the differential tax on a reduced sale price after excluding previously collected 4% VAT.
GSTZen · 3 days ago
India's GST framework allows businesses to claim Input Tax Credit on hotel accommodation when the stay is for business purposes. Eligibility depends on valid tax invoices, GST paid, and compliance with CGST Act sections 16 and 17(5). A minimum room rate of 7500 is required for ITC eligibility.
Indian Television Dot Com · 7 days ago
India's online gaming industry is challenging the Supreme Court's May 27 ruling that upheld the 28 per cent GST on online gaming, potentially triggering retrospective tax demands of over Rs 1.5 lakh crore.
GSTZen · 20 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 2 months 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.
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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.
