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

Susmita Dutta, CA , CPA (CA ) (2141 Points)

31 January 2020

Is CGST Rule 36(4) ,10% provisional ITC applicable for filing return for the financial year 2018-19?

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9 Replies

Anup Agarwal (1184 Points)
Replied 31 January 2020

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

Susmita Dutta, CA , CPA (CA ) (2141 Points)
Replied 31 January 2020

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.

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Anup Agarwal (1184 Points)
Replied 31 January 2020

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.

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RAJA P M ("Do the Right Thing...!!!") (127040 Points)
Replied 31 January 2020

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 .

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Anup Agarwal (1184 Points)
Replied 31 January 2020

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.