Tax department Penalizes JK Tyres Rs.7.20 Crore For Input Tax Credit Benefit
JK Tyres penalized ₹7.20 crore over Input Tax Credit under Karnataka GST; company to challenge the order.
Tax department Penalizes JK Tyres Rs.7.20 Crore For Input Tax Credit Benefit
The tax department has accused JK Tyres of availing Input Tax Credit (ITC) related to the Compensation Cess on the domestic portion of the Karnataka Goods and Services Tax (GST) turnover of Rs.7.20 crores.
The authority appropriated Rs.7.07 crore and demanded Rs.13.07 lakhs. It also slapped an interest and imposed a fine of Rs.7.20 crore.
The demand order was based on the alleged non-reversal of the ITC of Compensation Cess on coal from July 2017 to March 2022 on the State GST, which was kept unutilized in the Electronic Credit Ledger. However, JK Tyre stated, "The ITC was reversed/appropriated except to the extent of Rs.13.07 lakhs arising out of the difference in the department’s calculation method, which is contestable."
The company added, "There is no case for imposing interest and penalty as there was no intention to utilize the ITC since the final products do not attract Compensation Cess.”