The CBIC vide Notification No. 94/2020-Central Tax, dated December 22, 2020 has issued Central Goods and Services Tax Rules (Fourteenth Amendment), 2020, inter alia, amending Rule 36(4) of the Central Goods and Services Tax Rules, 2017 (“CGST Rules”), w.e.f. January 1, 2021 in following manner:
- The restriction of claim of Input Tax Credit (“ITC”) in respect of invoices/debit notes not furnished by the suppliers has now been reduced from 10% to 5% of the credit available in GSTR 2B.
- Substituted the word “furnished” in place of the word “uploaded”
- Inserted the words “in FORM GSTR-1 or using the invoice furnishing facility” after the words, brackets and figures “by the suppliers under sub-section (1) of section 37” to align it with the Invoice Furnishing Facility (“IFF”) introduced vide Notification No. 82 /2020-Central Tax dated November 10, 2020.
Rule 36(4) of the CGST Rules effective from January 1, 2021 will read as under:
“(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 furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR-1 or using the invoice furnishing facility, shall not exceed 5 per cent of the eligible credit available in respect of invoices or debit notes the details of which have been furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR-1 or using the invoice furnishing facility
Provided that the said condition shall apply cumulatively for the period February, March, April, May, June, July and August, 2020 and the return in FORM GSTR-3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above.”
The Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-94-central-tax-english-2020.pdf
We have recently released the 6th Edition of our GST Book titled “GST LAW AND COMMENTARY – WITH ANALYSES AND PROCEDURES”, in a set of 3 Volumes. We thank you all for the support and your enduring response.
Have a look at the complete tour of the Book at: https://rb.gy/3hifj3
Order your copy now and be a part of GST learning excursion in most comprehensive and lucid form !!
Special Discount: Use Coupon Code: GST35 for Flat 35% Discount
This book can be ordered online at: https://rb.gy/benrpb