While the industries were expecting customized amendments, this year’s budget focused majorly on the input tax credit availed by the taxpayers and the time limit of undertaking various compliances.
The Government has omitted the two-way matching provisions which were never implemented. This is a welcome step as these provisions were only creating confusion for the assessee. At the same time, this Budget has cast additional responsibility on the recipient taking input tax credit to ensure that the tax has indeed been deposited by the supplier. For various defaults done by the supplier, the input tax credit of the recipient has been proposed to be restricted.
Though such restrictions ensure that the tax is correctly paid by the supplier, they run contrary to the idea of “Ease of Doing Business” for the recipient.
Various changes relating to time limit for issuance of credit notes, for availing credits, etc. have been made so as to give ample time to the taxpayers to take necessary steps to cure deficiencies discovered while auditing of accounts.
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