CS Executive · Tax Laws and Practice · Input Tax Credit and Computation of GST Liability
Under Section 20(2) of the CGST Act, 2017, in what manner, time and subject to what restrictions does the ISD distribute credit?
The ISD distributes credit in the manner, within the time and subject to the restrictions and conditions that are prescribed. Section 20(2) leaves these details to the rules, not to the ISD's own choice or to case-by-case decisions by an officer.
- AAs may be prescribedCorrect
- BAs decided by the proper officer case by case
- CAs the ISD considers fit
- DAs the GST Council recommends each year
Explanation
Section 20(2) states the credit is distributed in such manner, within such time and subject to such restrictions and conditions as may be prescribed, meaning by the rules. It is not left to the ISD's discretion or the officer's case-wise decision.
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