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Goods and Services Tax
GST Panel may suggest allowing companies to claim input credit on free supplies
01 Aug 2018
"This move may bring much-needed clarity on the issue of credit eligibility on free supplies, but their quantum and cap needs to be rational.
The impact of capping the input credit eligibility on free supplies based on the overall turnover may vary from industry to industry and a standard cap may not be the most recommended manner of doing away with the anomaly unless backed by industry data and trends."
Krishan Arora
Partner, Grant Thornton India LLP
This article appeared in Bloomberg Quint on 1st August, 2018.
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