If a taxpayer claims RCM ITC in excess of the available balance in the RCM ledger, along with the current period RCM liability, the system issues a warning message, says the GSTN. It has also informed that strict system validations will soon be enforced.

The Tribunal set aside the service tax demand against the Amway distributor, noting the SCN lacked clarity and held that distributors resell goods on their own account not service providers.

Clause (ii) presupposes the existence of an LOC, where none exists; compliance is impossible. The Court invoked the maxim lex non cogit ad impossibilia, the law does not compel impossibilities, to hold that exporters cannot be compelled retrospectively to have opened LoCs.