Restriction on availment of the input tax credits (ITC) not appearing in form GSTR-2A

Ministry of the Finance vide notification number 49/2019-Central Tax dated 09th October 2019, has amended Central Goods and Service Tax Rules 2017.

As per the amended rules, in rule 36, after sub-rule (3), the following sub-rule (4) has been inserted:

“(4) 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 percent 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.”

Meaning thereby, now ITC in respect of invoices/ debit notes not uploaded by suppliers (i.e. not appearing in form GSTR-2A) cannot be avail in excess of 20% of the eligible ITC pertaining to invoices / debit notes uploaded by the suppliers.

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