Industries worldwide with the pace of their growth, in order to squeeze the benefits of economies of scale, tends to perform the functions on their own for which they generally are dependent on the third person. In this article, among the various functions performed, I would like to throw some light on the admissibility of Input Tax Credit on transmission wires laid outside the factory premises i.e. on the areas not owned by them, by the big factory houses generated in their own thermal plants u..
Under GST, there are many restrictions on availing of the input tax credit. One such limitation is present by the way of section 16(4) limiting the date of claiming the input tax credit to the due date filing of the return for September or date of filing of annual return whichever is earlier. Now GST department has started issuing the notices for those assesses that have filed returns after the due date mentioned in section 16(4) and hence, instructing them to reverse the credit that is being cl..