Draft Mail to send in Internal Department for changes in GST ITC credit rules
Sub : Huge Change in Claiming of GST Credit
Dear all,
There is huge change in claiming of GST credit (applicable from 01/01/21) wide notification 39/2021-CT, Dated 21/12/21 as under :
As per the new insertion of Section 16(2)(aa), a Recipient cannot avail Input Tax Credit (ITC) for the Invoice issues by the Supplier, if the Supplier has not filed that Invoice in his GSTR1 Returns i.e. Input tax Credit (GST Paid to vendors) in respect of invoices and debit notes shall be available only to extent they are furnished in GSTR1 by the vendors and the appearing in GSTR2A/2B of the recipient(your company name).
If Vendor have not filed GSTR1 showing invoice issued to us in within due date (11th of preceding month), than we will not able to take credit of tax till they show invoices issued to us in that month and filed GSTR1 which will impact our working capital as we will not able to claim ITC in that month.
You are requested to asked our vendors to file return within due date so that we can claim ITC in time.
Relevant clause of Section 16(2)(aa) of CGST Act is below for reference.
“(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;”.”
Regards,
XYZ
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