Concept of Valuation and Input Tax Credit in GST – Special Facets

Our Deputy Managing Partner, Rohit Jain and Associate Partner Ruchita Shah have co-authored the article, “𝗖𝗼𝗻𝗰𝗲𝗽𝘁 𝗼𝗳 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗜𝗻𝗽𝘂𝘁 𝗧𝗮𝘅 𝗖𝗿𝗲𝗱𝗶𝘁 𝗶𝗻 𝗚𝗦𝗧 – 𝗦𝗽𝗲𝗰𝗶𝗮𝗹 𝗙𝗮𝗰𝗲𝘁𝘀”, that has been published by The Chamber of Tax Consultants

The article explores certain special facets of valuation and Input tax credit (ITC) schemes under the GST law, reflecting on how these concepts have evolved in the Indirect tax regime of India and in the years after implementation of GST. It traces the evolution from transaction value to broader constructs like open market value, examines certain statutory inclusions and exclusions that influence value determination, and highlights the growing role of deeming fictions and amendments on specific issues like corporate guarantees. On ITC, it assesses the gap between the promise of seamless credit flow and expanding statutory and policy-driven constraints, including blocked credits, rate-conditions denying ITC, etc.

It also makes pragmatic reflections on structural improvements such as greater fungibility of credit that could better align the GST regime with its foundational objectives. The article underscores the interplay between legislative design and administrative implementation, noting areas where recent reforms have eased compliance and those where litigation risk and policy incoherence persist.

Read the article here