20% ITC Rule

  1. As per Notification no.: 49/2019/CGST
  • “Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37, shall not exceed 20 per cent. of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37.”
  • Further as per the conversation with the representative from CBEC, the above notification shall apply only for the filing of annual return. (Form 9)

Now, my question is whether this provision is applicable for monthly returns or for annual return??

Replies (5)
You can consider the procedure monthly, Quarterly & Annually...

Availing of  ITC credit is either on Monthly or quarterly basis depending upon the dealer. There is no provision to claim ITC in annual return as it is a consolidated statement of Monthly return . Hence  it is worth considering on a Month on Month or quarter on quarter.

The said notification will be considering annual basis...
If taxpayers can have valid tax invoices they can claim ITC as per his calculation also with considering GSTR 2A. In end of the year will be consider the 20% rule for total claimed ITC with GSTR 2A.

That's the way of notification, it's not considerable monthly / Quarterly...

As per my understanding and advice better to deal with every month to monthly return filers & Every quarter to quarterly filers...

The all of the above is taxpayers risk and own responsibility...

Is it notified yet ?? Is it applicable right now?

(Is it notified yet ?? Is it applicable right now?)

Can't understand Your question...!
Are You asking 20 percent rule or my reply...?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details