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Change in ITC Entitlement - Rule 36(4)
(w.e.f. 01/01/2021)

20% -> 10% -> 5% -> ?

(Buyer's ITC at the mercy of supplier)

Rule 36(4) has been again amended w.e.f. 01.01.2021 to restrict the ITC availment (in respect of invoices which have not been furnished by the suppliers) to 5% of eligible credit available (in respect of invoices which have been furnished by the suppliers). Earlier this limit was 10%. 

Below is the trend of past amendments in Rule 36(4). Seeing the past trend, one can easliy predict the next change?

%  Effective Date
20% 09/10/2019
10% 01/01/2020
5% 01/01/2021
? ?

 

Revised Rule 36(4)

2[(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 5[furnished] by the suppliers under sub-section (1) of section 37 6[in FORM GSTR-1 or using the invoice furnishing facility], shall not exceed 7[5 per cent.] of the eligible credit available in respect of invoices or debit notes the details of which have been 5[furnished] by the suppliers under sub-section (1) of section 37 6[in FORM GSTR-1 or using the invoice furnishing facility].]

 

Click here to see full Rule 36

 


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Author:

TaxReply


Dec 25, 2020

Comments


Is this also applicable in Dec, 20 GSTR-3B ?
By: Is This Also Applicable In Dec, 20 Gstr-3b ?
Dec 28, 2020


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