{
  "id": 12160638,
  "title": "GST Council May Address Input Tax Credit Rules, Safe Harbour For Bona Fide Recipients And Litigation",
  "url": "https://urgent.news/2026/10/05/gst-council-may-address-input-tax-credit-rules-safe-harbour-for-bona",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-05T13:20:27.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/gst-council-may-address-input-tax-credit-rules-safe-harbour-for-bona-fide-recipients-and-litigation"
  },
  "original_language": "en",
  "account": "New Delhi, October 5, 2026: Industry participants anticipate the GST Council to deliberate on input tax credit rules, proposing a statutory safe-harbour for legitimate recipients and ways to reduce litigation. The PHDCCI reported that the organization expects amendments to Section 16(2)(c) to safeguard input tax credit for recipients who have valid invoices, received supplies through banking channels, and are not collaborating with defaulting suppliers. The recovery process is expected to target the defaulting supplier first. Industry also seeks relaxation on blocked credits under Section 17(5) for specific sectors like motor vehicles, food and beverages, catering, beauty and health services, club memberships, and travel benefits. Furthermore, the industry seeks credit for all business-use expenditures recorded in books. Clear transitional language covering interest/penalty-only demands and Rule 142/DRC-07 recoveries is another priority. Ashok Kumar Batra, Chair of PHDCCI’s Indirect Taxes Committee, also requested a time-bound mechanism for utilizing or refunding cess balances once discontinued. Additionally, the industry seeks a proposal to ease credit transfer across GSTINs with the same PAN, addressing accumulation in low-output liability registrations. The industry chamber also mentioned expectations around reducing the number of notices for tax demands under Rs 10,000 or approximately 20% of cases by number. Lastly, practical guidelines for Tribunal functioning were discussed, including uniform e-filing, pre-deposit adjustment clarity, appeal clubbing under Rule 18 of the GSTAT Rules, and a monetary threshold for filing appeals.",
  "summary": "New Delhi, October 5, 2026: Industry participants on Monday said they expect the GST Council to address issues related to input tax credit and adopt statutory safe-harbour protections for bona fide recipients. The statement from industry chamber PHDCCI listed expectations including amendment of Section 16(2)(c), so that a recipient holding a valid invoice, having received the supply, paid through…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}