20% GST input limit on due date of GSTR1-urgent

This query is : Resolved

CA Parul Saxena (Querist)
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16 November 2019 Suppose on 11th of Nov the itc in 2A is Rs.1000000 and in books is Rs.1500000 we can claim Rs1200000/-(Rs.10 lakh+20%) in GSTR3B of Oct 19.
Now on 15th Nov the itc in 2A is Rs.1500000 but we have claimed Rs.12 lakh then what about balance Rs.300000 (15Lakh-12Lakh) itc.? How this will be claimed.?
If in next month this Rs.300000 is more than 20% of eligible itc of next month then would it be lapsed?

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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16 November 2019 As per notification no 49 dated 09.10.2019, the amount reflected in GSTR 2 A as on 11 th of Succeeding month ( due date of filing GSTR 1 Return) is eligible to consider in GSTR 3 B & for working out restriction on 20% of GST ITC credit.. The amount reflected in the subsequent dates to be taken in Nov 19 month GSTR 3 B return.

CA Parul Saxena

CA Parul Saxena (Querist)
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16 November 2019 ok i know but in subsequent month if this leftover amount is more than 20% then what to do?

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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16 November 2019 To avoid this, we have to instruct and follow our suppliers to file their GST 1 return for all their invoice on or before due date.

We can claim GST ITC credit subsequent months also till the due date of filing annual return or 30th September of the succeeding financial year which ever earlier

CA Parul Saxena

CA Parul Saxena (Querist)
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16 November 2019 It is very cumbersome process to continue. Every month do the reconcilation restrict the credit and then in next month again check 20% limit for current month and previous month differently.
Also this case can not be avoided even if we ask our vendors to file return on time as many of them file quarterly return

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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16 November 2019 Yes , I agree with you regarding mismatch due to quarterly return vendors and also issue of higher working capital requirement

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