Blocking of GST Credit and Restriction of ITC to 10% of GSTR 2A

Sr. No

CGST Rule

Amended Provision

Effective From

1

36(4)

Input tax credit to the recipient in respect of invoices or debit notes that are not reflected in his FORM GSTR-2A shall be restricted to 10 % of the eligible credit available in respect of invoices or debit notes reflected in his FORM GSTR-2A. (Earlier the said restriction was 20% of eligible Invoices).

1st January 2020

2

Rule 86A

• Conditions for use of amount available in Electronic Credit Ledger
• ITC has been availed by recipient (Invoice/Debit Note) -
• The issuer does not exist or does not carry business from any place for which registration has been obtained; or
•  Goods or Services is not received
• The Supplier does not pay tax to the Government; or
•  The recipient does not exist or does not carry business from any place for which registration has been obtained; or
• The Invoice or Debit note, on which ITC is availed, is not in possession of the Registered Person
• In the above cases, the Department may not allow the disputed ITC to be used for payment of GST Liability or allow refund of such ITC.
• Such Restriction shall apply till one year from the date of imposing such restriction

26th December 2019

3

Rule 138E

The generation of E-Way Bill on the portal shall be blocked in case of non-Filing of GSTR 1 for 2 months or quarters (this block shall apply to a person as a recipient/ Supplier/Transported).

Earlier the blockage was in case of non-filing of GSTR 3B for 2 months or quarters.

11th January 2020