Solved Queries
Q. 182 Query is about the current Chit fund GST rate?
Ans. “Services provided by a foreman of a chit fund in relation to chit” have been omitted from the service rate notification now the above services would be taxable under “Financial and related services other than” to be taxable at the rate of 18%( with ITC). This has been made effective from 18.07.2022.
Q. 181 I have chit fund business, Can i claim input tax credit. If yes, what are the conditions and applicability for claiming ITC for Chit fund ?
Ans.The following rates have been revised for entry 15 in the notification 11/2017- CTR.
| Entry No. | Description of services | Rate of tax | Period |
| 15. item (i) | Services provided by a foreman of a chit
fund in relation to chit |
12% (with no ITC on services) | This is upto 17-07-2022 |
| 15. item (vii) | Financial and related services other than | 18% with full ITC | w.e.f 18-07-2022 |
In order to claim ITC, conditions prescribed under section 16 along with rule 36 of the CGST Act and rules have to be complied with.
Q. 180 Sir department is insisting for deposit of Rs.400,000/- for ITC not appearing in GSTR-2A for the FY 2017-18, and Interest for the Period from FY 2017-18 to till date on the same. Please guide how to tackle this situation. As there was no monthly GSTR-2A at that time how can we identify then ?
Ans. Order no. 02/2018 was issued dated 31st December 2018 to provide relief in terms of claiming ITC for the FY 17-18, a proviso was inserted to sub-section 4 of section 16 to clarify the claim of ITC pertaining to FY 17-18, therefore, ITC can be claimed till march 2019. “Provided that the registered person shall be entitled to take input tax credit after the due date of furnishing of the return under section 39 for the month of September 2018 till the due date of furnishing of the return under the said section for the month of March, 2019 in respect of any invoice or invoice relating to such debit note for the supply of goods or services or both made during the financial year 2017-18, the details of which have been uploaded by the supplier under sub-section (1) of section 37 till the due date for furnishing the details under sub-section (1) of said section for the month of March, 2019”. In the above-mentioned case, you are required to trace the missing ITC invoices appearing in succeeding GSTR-2A. However, this is a very subjective matter of litigation. It is also advised to take a detailed opinion to have better clarity.
