Restriction on GST ITC

15 November 2019
We request expert opinion on restriction on GST ITC Credit with reference to notification no 49 dated 09.10.2019 and circular dated 11.11.2019.

We are asking query with example to understand the point.
Total GST Credit as per GSTR 2A - Rs.100/-
GST Credit as per GTSR 2 - Purchase register - Rs.110

In the above case the assessee is eligible for Rs.100 + 20% on 100 = 20 = Rs.120 As per GSTR 2 credit taken is 110.- Hence the asseses is eligible for Rs.110.

We have to work out the exact matching of GSTR 2A and GSTR 2 - Supplier wise and 20% is to be considered for matched amount.

Please also advise whether the assessee can consider the credit reflected in GSTR 2A in previous month and a accounted in the current month.

CA. Anshul Medatwal (Expert)
16 November 2019
I will explain you by an example : How to take credit
Take credit of GSTR-2A
Less : Unmatched credit between "GSTR-2A" & "GSTR-2"
Less : Ineligible credit
Less: RCM & ISD (If any)
Now you will get eligible credit for calculation of 20% credit
Credit taken in "GSTR-3B = Matched credit with ":GSTR-2A" + 20% credit calculated as above

16 November 2019
Thanks for explaining with example.

But unmatched credit between GSTR 2 and GSTR 2 A includes credit taken by assessee for the invoice raised by the supplier in previous months ( GSTR 2 A) and credit taken in the current month ( GSTR 2) based on actual receipt of material and raising iof goods receipt note ( GRN) and the assessee is eligible for this credit. Whether we can add the above in Eligible credit as per GSTR 2A

CA. Anshul Medatwal (Expert)
30 November 2019
yes, you are eligible for taking credit for previous months invoices if it is matched with "GSTR-2A" but you have not consider in calculation of 20% ITC

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