In Rule 36(4), when we check the restriction of 10%, it is to be compared individually 10% head wise(IGST, CGST, SGST) or directly compare with Total ITC ?
Yash Morakhia (107 Points)
18 February 2020In Rule 36(4), when we check the restriction of 10%, it is to be compared individually 10% head wise(IGST, CGST, SGST) or directly compare with Total ITC ?
Deepak Gupta
(CA Student)
(15922 Points)
Replied 18 February 2020
The credit available under sub-rule (4) of rule 36 is linked to total eligible credit from all suppliers against all supplies whose details have been uploaded by the suppliers.
RAJA P M
("Do the Right Thing...!!!")
(127580 Points)
Replied 18 February 2020
Pankaj Rawat
(GST Practitioner)
(55037 Points)
Replied 19 February 2020
RAJA P M
("Do the Right Thing...!!!")
(127580 Points)
Replied 19 February 2020
Yash Morakhia
(107 Points)
Replied 25 February 2020
It is nowhere mentioned in the law that it is Act wise or consolidated so we can interpret it from both the sides?
RAJA P M
("Do the Right Thing...!!!")
(127580 Points)
Replied 25 February 2020
| Originally posted by : Yash Morakhia | ||
 |
It is nowhere mentioned in the law that it is Act wise or consolidated so we can interpret it from both the sides? |  |
May be or Not...
But.,
As per my view it's head wise....
RAJA P M
("Do the Right Thing...!!!")
(127580 Points)
Replied 25 February 2020
For Example :
I have ITC Rs. 3 lakhs as per my books (Each 1 lakh in CGST, SGST & IGST). In GSTR2A available as below
CGST - 95000, SGST - 95000 & IGST - No ITC...
Now.,
What Can I do as 10% rule...???
How can I file My GSTR-3B return...???
Yash Morakhia
(107 Points)
Replied 25 February 2020
So in your above example if we consider Head wise, then for CGST and SGST we can claim 95000+10%(subject to ceiling) i.e Rs 1 lakh each and you wont be able to claim under IGST.
However, if we go on consolidated basis, you can claim Total ITC of 209000( 190000 + 10%). Still you wont get credit of Balance 91000. Thats the issue with this rule.
RAJA P M
("Do the Right Thing...!!!")
(127580 Points)
Replied 25 February 2020
Yash Morakhia
(107 Points)
Replied 25 February 2020
RAJA P M
("Do the Right Thing...!!!")
(127580 Points)
Replied 25 February 2020
Yash Morakhia
(107 Points)
Replied 25 February 2020
I think it can be taken if we compare total ITC(and not head wise) because total ITC reflecting is 190000 and thus we can take Total ITC of 190k + 10% in 3B thats what I think.
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