Amendment to Input Tax Credit Rules

Authority and Scope: Central Government, on Council's recommendation, amends Notification No. 5/2017-Central Tax (Rate). Provisional Insertion: New proviso exempts certain goods from input tax credit (ITC) accumulated after August 1, 2018.

Excluded Goods: ITC lapse applies to goods listed at serial numbers 1-7 of the Table in the notification. Effective Date: ITC accumulated on supplies post-August 1, 2018, lapses after July 2018's tax payment.

Issuing Authority: Signed by Gunjan Kumar Verma, Under Secretary to the Government of India. Impact on Businesses: Businesses affected must adjust procurement strategies to avoid ITC loss.

Compliance Reminder: Businesses urged to review ITC utilization and comply with amended rules. (Gunjan Kumar Verma) Under Secretary to the Government of India