Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
Reversal of Excess GST Input Tax Credit Following Rate Reduction or Reclassification as Exempt
Corporate ComplianceExcise, VAT & CustomGST
Businesses are required to reverse excess GST Input Tax Credit (ITC) when the GST rate on goods or services is reduced or when supplies are reclassified as exempt or nil-rated. This reversal is mandatory under Section 18(4) of the CGST Act, which stipulates that any ITC on inputs and capital goods in stock on the day immediately preceding the exemption date must be paid back.
