Introduction: 

In general, Supplier is liable for payment of Goods and Services Tax on the outward Supplies he made during a period of time by filing the required returns as per Sec 39 of the Central Goods and Services Tax Act,2017 (herein after referred to as CGST Act,2017). At the time of payment, he is provided an option for utilization of taxes paid on purchase of inputs or input services or both which are used against the output tax liability and balance to be paid in cash.

Section 16(1) of the CGST Act,2017 provides for various conditions to be satisfied in order to claim input tax credit. However, Section 17(5) states that “notwithstanding anything contained in Section 16(1) of the CGST Act,2017 input tax credit (here in after referred to as ITC) shall not be availed in respect of following transactions”. So, the main objective of this article is to understand the list of transactions specified under Section 17(5) on which credit is not allowed to be adjusted against outward supplies. These are also called blocked credits which include the following;

Read more: BLOCKED CREDITS

What is Fundamental Risk

Fundamental risk is the risk that the business's fundamentals are degrading or about to degrade. If you see sales declining or the company is selling an outdated product, you need to stay away from this company. Increasing debt and an eroding cash position are other danger signs. 

Over time, organizations have created a plethora of functions that manage business risks from their own point of view.

Researchers look at risk by product or market life cycle. For example, missing customer needs, mistakes in product design, poor messaging, insufficient trial or repeat purchases, product extensions, upgrades, and delays in discontinuing a product are all risks that product managers routinely face. Mathematically, a key formula is “expected value of perfect information.”

Product managers are constantly asking themselves, “What is the risk (probability) of missing an insight if we don’t invest more in research?” 

Read more: The Many Sides of Risk

Read more: Input Tax Credit

1. An establishment has less than 10 employees; one of the employees quits his employment after serving for a period of 7 years. Will he be entitled to receive gratuity? 

No. The employee is not entitled to receive gratuity under the Payment of Gratuity Act, as the establishment is not covered under the Act. The Payment of Gratuity Act is applicable only to shops and establishments in which 10 or more persons are employed or were employed on any day of the preceding twelve months. 

2. Whether the Payment of Gratuity Act is applicable to educational institution?

Yes. An educational institute will be covered under the Payment of Gratuity Act. The Act has been amended with effect from 3.4.1997 to cover the educational institutes. [Shri GurudevAyurvedMahavidyala Gurukul Ashram Vs Madhav 1994 LLR 894 Bom HC] 

Read more: FAQs under Payment of Gratuity Act