Suggestions on GST Acts (July 2017) by Institute of Chartered Accountants of India
20. 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.
Suggestion
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
(if aforesaid suggestion be accepted to below _____ to ___ may not be consider)
Read ICAI Suggestions on GST Act to Govt : July 2017
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