Allow free flow of GST ITC and Delete Section 17(5) : ICAI

By | October 9, 2017
(Last Updated On: October 9, 2017)

Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

Law Related Issues

36. Ensuring free flow of credit

There is no requirement to create such a degree of suspicion about business and personal
expenses. If the business needs justify the expense, then subject to the safeguard in section
17(1), credit should not be restricted. Provisions under Section 17 (5) relating to the Input
Tax Credit needs to be simplified and brought at par with the simple concept that if outward
supplies of a person are taxable then the inward supplies of the goods or services or both
should be allowed as credit.

It is suggested to delete the sub-section (5) and may include cross-link to any income-tax
disallowance of expenses being personal in nature

Read Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

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About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email :

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