Rule 36(4) of SGCT Rules 2017
Can anybody explain Rule 36(4) of the GST Rules 2017 which restricts availment of credit to 120% now revised to 110% that deems credit claimed as inadmissable? more
It is very well stipulated in the ACT itself. The Point is "credit claimed as inadmissible" for the reasons, grounds is not stipulated so to challenge the very order. Mere academic discussions may not suffice any fruitful purpose. Hence the request. more
This restriction is on self assessment basis and GSTR 3B can be filed even if you claim more than 110%, but after wards you may be called to pay interest etc. However if you want to restrict to claim ITC upto 110% as per rules then this 110% is on consolidated basis and not supplier wise. Rest unclaimed ITC may be claimed as and when ITC is uploaded in 2A. eg. Inward supplies for the month of Jan 2020 involves ITC of Rs. 100 GSTR-2A of Jan 2020 reflects Rs. 70 ITC that can be claimed in GSTR-3B of Jan 2020 is as Rs 70+7=77 Balance ITC of Rs. 23 can be claimed as: if invoices of Rs. 15 gets uploaded by the supplier in Feb 2020 then ITC to be claimed in Feb 2020 in respect of Jan 2020 would be as 15+1.50=16.50 Now you have claimed 77+16.50=93.50 out of 100. To claim remaining ITC of 6.50 you will have to wait for other months. This way every month one will have to reconcile and track until and unless full ITC is claimed. more
better gnore unwanted emails ... Jab GSTR 1 sab ka file hoga than the concerned issue will be past.. more
Whether the rule can be legally implementable is a matter of issue. As per ACT there are certain conditions stipulated for availing Input TAX Credit .If the buyer satisfies all the conditions stipulated in ACT then then ITC can be availed. So this notification is against the ACT unless the ACT is amended. I am not sure of any amendments in the ACT.Someone may help. If the Rule 36(4) is legally enforceable then the calculations are as follows. Example 1. Input Tax Credit as per buyers book Say Rs.80 ITC as per GSTR 2A say 100 ITC eligible as per Rule 36(4) say 110 from 01.01.2020 ITC that can be used = Rs.80 Example 2 Input Tax Credit as per buyers book Say Rs.150 ITC as per GSTR 2A say 100 ITC eligible as per Rule 36(4) say 110 from 01.01.2020 ITC that can be used = Rs.110 more
your reply is much appreciated sir..
Apparently in this case the ITC claimed reflects in full in GSTR 2A & GSTR 3B was filed 10 days from the scheduled date, but the claim has been declared inadmissable, requiring the dealer to deposit the amount equal to ITC with interest to department...
Thank you for your input & guidance more
pAY THE DIFFERENCE OR WAIT FOR NEXT ANNOUNCEMENT. more