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)

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

Lekhraj sood

Lekhraj sood (Expert)

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)

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

Lekhraj sood

Lekhraj sood (Expert)

02 September 2020 Ofcourse.We are only talking of eligible credit

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