CGST Rule 36(4) applicable for the financial year 2018-19

No.
Rule 36(4) shall be applicable from 09/10/2019

But I received a notice for Sept. 2018 return filed on Dec 2019 regarding the 120% Provisional ITC.

So if you have any notification for the same please share.

The notice is like this.

As you are aware, Rule 36(4) of the CGST Rules 2017 notified w.e.f. 09.10.2019, restricts availment of credit to 120% of the eligible credit based on invoices/debit notes uploaded by the supplier in their GSTR-1s. From 1^st January 2020, the eligibility has got reduced to 110% of such eligible credit.

 

2.         Records indicate that in your GSTR-3B return for  Sep-2018  you have availed credit of  Rs.20000  more than the credit admissible under Rule 36(4) of the tax reflected in your GSTR 2A for the said period.

 

3. You are advised to reverse the amount of credit availed in excess. In case such credit has been utilised for paying tax, the same may be deposited through FORM DRC-03 with applicable interest.

Provision of Rule 36(4) are applicable from 09/10/2019.
these provisions are not as per financial year wise. These provisions are activated on all returns filed on and after 09/10/2019.

In your case you have filed return in Dec 2019, hence provisions are perfectly valid to be applied.

The said rule not applicable before 09/10/2019. Also it's noted in the said notice then the provisions not applicable as per notification and also the notice before the date...

Note : Some officers not aware the Gst provisions and act with its notifications. So, better to contact the circle officer with notice. You will rectify the issues to the officer .

Mr. Raja P M

Rule 36(4) is applicable from 09/10/2019, there is nothing said about return period.
Ms Susmita Dutta has also mentioned that return is filed after being applicable of this rule..

Hence this rule can be applied.

further I am thinking .. Notice should be under section 16(4) instead of rule 36(4).
However rule 36(4) is perfectly valid in this case.

But, I don't think the notice issued based on filed date...
If it's issued as filed date then it's wrong. They can consult the same with officer...

Well as I think rule is applicable from 09/10/2019 on all returns filed after this date.

If it's issued as filed date then it's wrong. They can consult the same with officer...

CGST Rule 36(4) ,10% provisional  ITC applicable for filing return w.e.f 09/10/2019