Blocking of E-way Bills / ITC Ledger and Amendment to Rule 36(4)

Notification No. 75/2019–Central Tax Dated: 26th December, 2019

Blocking of E-way Bills for non-furnishing of GSTR-1

With effect from the 11th January, 2020, in rule 138E, after clause (b), the following clause shall be inserted, namely:-

“(c) being a person other than a person specified in clause (a), has not furnished the statement of outward supplies for any two months or quarters, as the case may be.”

Thus, E-way bill generation shall be blocked if GSTR-1s are not filed for any two months or quarters, as the case may be

Amendment to Rule 36(4)

Effectively ITC shall not exceed now 10% ( Earlier 20%) of the eligible credit reflected in GSTR-2A

Rule 36(4) the CGST Rules, 2017

• Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers in their GSTR-1 under section 37(1), shall not exceed 10 per cent of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers under section 37(1).

Blocking of ITC Ledger

Rule 86A inserted- Conditions of use of amount available in electronic credit ledger.-

Debit of ITC ledger may be disallowed if …

• ITC availed on the strength of tax invoices/ debit notes etc issued by non-existent person or without receipt of goods or services or both;
• Person availing ITC is non-existent or is not in receipt of tax invoice/ debit note etc

Above restrictions may be removed if conditions for disallowing debit of electronic credit ledger no longer exist, OR after expiry of a period of one year from the date of imposing such restriction.