Confusion on 20%itc availment

Rule 59 of the Rules provides that Form GSTR-1 is the statement in which the details of outward supply is required to be furnished u/s 37(1) of the Act. Further, for specified class of registered persons, as per notification No. 57/2017 – Central tax dated 15.11.2017, the facility of quarterly filing of Form GSTR-1 is made available. Hence, the data uploaded by the quarterly return filers in their Form GSTR-1 quarterly would be in terms of section 37(1) only, as required under rule 36(4) ibid. Hence, it can be said that even though such suppliers upload quarterly, the taxpayer can avail the related credit in its monthly return.

However, if the quarterly return filers miss to upload in their Form GSTR-1 by the due date applicable then there could be a non-compliance with rule 36(4). This would create practical difficulty for the taxpayer to track the invoices relating to the quarterly return filers. Further, it is seen that due to the provision in rule 36(4), a number of suppliers are being asked to file their Form GSTR-1 monthly instead of quarterly. The same can be done by clicking “edit” option on the return dashboard at the GST portal by the supplier. This should be done by the suppliers before filing Form GSTR-1 for a particular quarter.
Well... You are exactly correct Mr Pranav...

The said rule fully banned to small business & dealers. Bcoz, One my client give instructions to his purchase team as "Avoid purchasing from Quarterly filing Dealers"...
This is very bad situation...
The capping of 20% ITC notification will not yield positive result for the Govt. It will create problems for assessees. Such measure will generate unnecessary litigation which is not in the interest of Govt. as well as taxpayers. It is not simplification but complication.

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