ITC Credit

This query is : Resolved

Sanjay Mittal (Querist)
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30 December 2019 We are an mfg. company. some of our suppliers filing their GSTR1 on quaterly basis. Please advise in that case can we take the 100% ITC of that bill or we have to take 20% of ITC in our returns as he is filing his return on qrt. basis. Please advise with exaple if possible.

CA Ashwini Seeram

CA Ashwini Seeram (Expert)
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30 December 2019 The govt has issued a circular- 123 with respect to rule 36(4). This circular does not speak about the vendors who file quarterly returns. This shows that the additional credit of 20% over and above the invoices reflected in GSTR-2A is given after taken into consideration the quarterly filers.
Therefore only 20% of ITC with respect to vendors who file quarterly returns will be allowed each month.

CA Anita Bhadra

CA Anita Bhadra (Expert)
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30 December 2019 Yes , Agreed with CA Ashwini Seeram's view.

This circular has failed to address the situation where suppliers have opted for quarterly filing of GSTR-1 while the recipient files monthly GSTR-1.

You have no option but to wait for them to file their quarterly return for claiming ITC