Ref: Notification No. 49/2019 – Central Tax dated 9 Oct 2019 which add Rule 36(4) of CGST

  • 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 under sub-section (1) of section 37, 
  • shall not exceed 20 per cent.
  • of the eligible credit (i.e. excluding credit like 17(5) block)
  • available in respect of invoices or debit notes
  • the details of which have been uploaded by the suppliers
  • under sub-section (1) of section 37 (Outward supply return it exclude ISD, TDS,TCS,NRI,COMPO it mean even if ISD CREDIT is not available in 2A, ITC can be availed i.e can be aclaim in addition to 20%)

  • the restriction is not imposed through the common portal (i.e. Portal will not auto populated/limit ITC at 120% of 2A ITC)  
  • the availment of restricted credit in terms of sub-rule (4) of rule 36 of CGST Rules shall be done on self-assessment basis by the tax payers.
  • taxpayers may avail full ITC in respect of IGST paid on import, documents issued under RCM, credit received from ISD etc. which are outside the ambit of sub-section (1) of section 37, provided that eligibility conditions for availment of ITC are met in respect of the same. 
  • The restriction of 36(4) will be applicable only on the invoices / debit notes on which credit is availed after 09.10.2019 
  •   The restriction imposed is not supplier wise (consolidated basis)
  •   The taxpayer may have to ascertain the ITC from his auto populated FORM GSTR 2A before filling GSTR3B.
  •   The balance ITC may be claimed by the taxpayer in any of the succeeding months
  •   Taxpayer may avail full ITC in respect of a tax period, as and when the invoices are uploaded by the suppliers to the extent Eligible ITC/ 1.2            

CASE 1

CASE No. Details of suppliers’ invoices for which recipient is eligible to take ITC 20% of eligible credit where invoices are uploaded Eligible ITC to be taken in GSTR- 3B to be filed by 20th Nov.
Case 1 Suppliers have furnished in FORM GSTR-1 80 invoices involving ITC of Rs. 6 lakhs as on the due date of furnishing of the details of outward supplies by the suppliers. Rs.1,20,000/- Rs. 6,00,000 (i.e. amount of eligible ITC available, as per details uploaded by the suppliers) + Rs.1,20,000 (i.e. 20% of amount of eligible ITC available, as per details uploaded by the suppliers) = Rs. 7,20,000/-
Case 2 Suppliers have furnished in FORM GSTR-1 80 invoices involving ITC of Rs. 7 lakhs as on the due date of furnishing of the details of outward supplies by the suppliers. Rs. 1,40,000/- Rs 7,00,000 + Rs. 1,40,000 = Rs. 8,40,000/-
Case 3 Suppliers have furnished in FORM GSTR-1 75 invoices having ITC of Rs. 8.5 lakhs as on the due date of furnishing of the details of outward supplies by the suppliers. Rs. 1,70,000/- Rs. 8,50,000/- + Rs.1,50,000/-* = Rs. 10,00,000 *   The additional amount of ITC availed shall be limited to ensure that the total ITC availed does not exceed the total eligible ITC.
FCA DISA LOKESH SINGHAL
8168000601

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Name: lokesh
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2 Comments

  1. U S Misra says:

    यदि क्रेता द्वारा किसी भी इनपुट कर का दावा किया जा रहा है तो उसे इसका लाभ देते हुए विक्रेता का विवरण भी क्रेता से विभाग को मांग लेना चाहिए और विक्रेता से कर की मांग कि जानी चाहिए न कि क्रेता को मिलने लाभ पर अंकुश लगाया जाए I विभाग कि यह निति विधि संगत नहीं है I

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