Restriction Claiming ITC U/s 36 (4)

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This discussion clarifies how to claim Input Tax Credit (ITC) under Section 36(4) of the GST law. It explains that you can claim 110% of the ITC reflected in your GSTR-2A. Crucially, any input tax credit listed under Section 17(5), which details restricted items, must be ignored when calculating your claimable ITC.

Daya

Daya (Querist)
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02 September 2020 what is percentage to claim U/s 36 (4) to claim input .please explain in brief.

Lekhraj sood

Lekhraj sood (Expert)
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02 September 2020 Example-
ITC availed by you in a month is of 50 invoices amount of ITC Rs. 5,00,000/-
Invoices appearing in GSTR2A - 45 invoices involving ITC of 4,50,000/-
Invoices not appearing in GSTR2A- 5 invoices involving ITC of Rs. 50,000/-
ITC claimable as per rule 36(4) will be = 4,50,000+10% of 4,50,000 = 4,95,000/-
Hope to have clarified.

Daya

Daya (Querist)
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02 September 2020 But sir while claiming i have to ignored input displayed under section 17(5) please reply .

Lekhraj sood

Lekhraj sood (Expert)
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02 September 2020 Ofcourse.We are only talking of eligible credit

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