Gstr 2 a claim

To curb the menace of fraudulent trading through fake invoices and wrongful availment of ITC under GST, CBIC has inserted Rule 36(4) w.e.f. 9-10-2019 which restricts availment of ITC and prescribes that a taxpayer shall not avail ITC exceeding 20% of amount of ITC available in Form GSTR-2A.

Notification No. 49/2019 – Central Tax, 09.10.2019

w.e.f. 01.01.2020, the said limit has been reduced to 10%

Notification No. 75/2019 – Central Tax, 26.12.2019

To know the calculation process and other clarifications, like how to avail the balance ITC, read Circular No. 123/42/2019– GST, 11.11.2019