Discover the latest from the Orissa High Court’s stay on demands related to Input Tax Credit (ITC) under GST laws. M/s. OSL Securities Limited challenged the constitutionality of Section 16(2)(c) of the OGST/CGST Act.
In a recent development, the Orissa High Court has placed a stay on ITC denial and consequent demands made under Section 73 of the Odisha Goods and Services Tax Act (OGST Act) and Central Goods and Services Tax Act (CGST Act) against M/s. OSL Securities Limited. The demand was issued due to the petitioner claiming Input Tax Credit (ITC) while their supplier had not shown the transaction in their Form-GSTR-3B.
M/s. OSL Securities Limited has challenged the constitutionality of Clause (c) of Sub-section (2) of Section 16 of the OGST Act/CGST Act. This section specifies that a registered person can claim credit for input tax only if the tax charged for the supply has been paid to the Government, either in cash or through the utilization of admissible input tax credit.
The petitioner has contested the order dated 27.12.2023 issued by the Assistant Commissioner of State Tax, Cuttack-1, Central Circle, which raised a demand of Rs. 11,56,818.00. This amount comprises Rs. 5,45,204/- as tax, Rs. 5,57,094.00 as interest, and Rs. 54,520.00 as a penalty for the tax periods of July 2017 to March 2018.
In response to the petitioner’s plea, the court has directed that M/s. OSL Securities Limited deposit 20% of the determined tax amount within four weeks from the date of the order. No coercive action will be taken against the petitioner during the pendency of the writ petition, as per this interim measure.
Also Read: Deadline to opt for composition scheme for FY 2024-25
Read More
Kerala High Court Grants GST Exemption for Import of Medicine to Treat Rare Disease