[Esha Rathi is a final year B.B.A. LL.B. (Hons.) student at Jindal Global Law School] Parent companies extending corporate guarantees for their subsidiaries is a common practice but has been a subject of debate on whether it can be construed as a taxable service. In July 2023, the Directorate General of Goods and Services Tax Intelligence issued tax demand notices to numerous local corporate...
Denying Input Tax Credit to Bona Fide Recipients Where GST is Not Paid by the Supplier
[Shubham Sharma is a 2nd year BBA LLB (Hons.) law student at Chanakya National Law University] A key distinction between GST and the pre-GST tax regime is that GST promises to eliminate the “cascading effect of taxes” or “tax on tax” that sellers often suffer from. Input tax credit (ITC) under GST is one such core concept that furthers this objective. ITC is the tax that a business pays on a...
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