Notification No. 49/2019 – Central Tax dated 9 October 2019 has announced a major change in availment of Input Tax Credit (‘ITC’) while filing monthly GST returns.
Section 43(A) of CGST Act, 2017 (‘the Act’) and the recent amendment in rule 36 of the CGST Rules, 2017 provides that an assesse can claim twenty percent of eligible ITC on inward supplies for which details have not been furnished by the outward supplier in its GSTR 1.
The same can be explained as under;
|1.||Total ITC as per GSTR 2A of assesse||100,000||100,000||120,000|
|2.||Eligible ITC as per GSTR 2A of assesse||80,000||80,000||110,000|
|3.||20% of eligible ITC||16,000||16,000||22,000|
|4.||Maximum ITC availment as per recent amendment||96,000||96,000||132,000|
|5.||Available ITC as per Purchase register of assesse||120,000||120,000||130,000|
|6.||Total ITC which assesse can claim||96,000||96,000||130,000|
This amendment would lead to additional compliances for the companies enumerated as under:
This amendment would lead to additional burden to the companies. The ITC availment prior to this was assesse friendly as the reconciliation of missed ITC was to be made at asessees’s ease (majorly annually) and not monthly as introduced by this amendment.