Below are some of the important amendments made to CGST Rules 2017, vide Notification No. 49/2019 – Central Tax dated 9th October 2019:

1. Insertion of sub-rule (3) in Rule 36-

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 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.

Let us understand the same with help of below example-

Total ITC available = Rs. 10,00,000

ITC as per GSTR-2A (eligible) = Rs. 8,00,000

ITC not showing in GSTR-2A = Rs. 2,00,000

ITC not available to taxpayer = Rs. 2,00,000 – (Rs. 8,00,000 x 20%) = Rs. 40,000

2. Amendment of Rule 61(5)-

Where the time limit for furnishing of details in FORM GSTR-1 under section 37 or in FORM GSTR-2 under section 38 has been extended, the return specified in sub-section (1) of section 39 shall be furnished in FORM GSTR-3B. Provided that where a return in FORM GSTR-3B is required to be furnished, then such person shall not be required to furnish the return in FORM GSTR-3.

This has further circumvented the judgement of the Gujarat High Court in the case of AAP and Company, which mentioned that GSTR-3B is not a return.

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January 2021