Section 43A Rule 36(4) of the CGST Act, 2017 and CGST Rules, 2017 – Restricting the Input Tax Credit (ITC) limit to 20% of the eligible ITC which is as per GSTR-2A.

First Month

GST Payable now shall be paid. ITC Deferred a/c balance left out now shall be recoverable in next months as when appear in Fom-2A.

Second MonthLet’s Take an Example for better understanding

Let’s Take an Example for better

Make Entry in Books after the Reconciling of Form -2A [ Amount in Rs.]

1. ITC – Deferred 50 Dr.
ITC 50 Cr.
2. ITC 10 Dr.
ITC-Deferred 10 Cr.
3. GST Payable a/c 60 Dr.
ITC 60 Cr.

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