Let us start with CGST!

Sir, refer to your views regarding benefit to the service provider viz. Yet another big advantage that could accrue to the service provider is that, he would be able to avail of cenvat credit of the duties paid on inputs.

However, the experience so far has been otherwise. When the question of giving credit for taxes paid on inputs, capital goods and input services comes, the Central Govt and all the State Govt. start developing cold feet. You know how many conditions are laid down for availing such credit and, in reality, tax payer finds it useless to claim it so.

In fact the field officers' approach is to disallow maximum amount of credit calimed by the tax payer. During the course of audit, the assessee is forced to withdraw claim for credit claimed. In fact, they openly state that they have to show to their higher authorities that they have done some work. This is a common experience of all the assessees.

Apart from that the Central Govt. has not spelt out policy regarding eligibility of the assessee for tax credit. If the approach of the Government is going to remain the same as it has been so far, one should not have high hopes in this respect.

I know this may sound pessimistic, however, the experience so far of the tax payers compels him for the same.

CA Pradip Shah

Pradip Shah 26/11/2015