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Taxation Central Ministry of Finance Integrated Goods and Services Tax Act, 2017

Amendment in Notification No. 8/2017- Integrated Tax (Rate): Input Tax Credit Calculation

19-Oct-2023 | 15/2023- Integrated Tax (Rate)

Ministry of Finance has issued a critical Notification, amending the earlier Notification No. 8/2017- Integrated Tax (Rate) dated 28th June 2017. Effective from 20th October 2023, this amendment primarily focuses on the calculation of input tax credit in cases where the supplier of an input service charges central tax at a rate higher than 2.5% in the same line of business.

Key Amendments:

Amendments in Serial Numbers 8 and 10: Significant changes have been made to serial numbers 8 and 10, particularly concerning input services in the same line of business that charge central tax. Under this amendment, if the supplier of an input service charges central tax at a rate higher than 2.5%, the credit of input tax charged on the input service in the same line of business, in excess of the tax paid or payable at the rate of 2.5%, will not be allowed. This adjustment has a direct impact on how input tax credit is calculated in such situations.

Amendment in Serial Number 34: Serial number 34 undergoes a modification in item (iv), changing the wording from totalisator or a license to licensing a. Additionally, item (v) and the entries related to it have been omitted. This revision has implications on the classification of services within this category.

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