ITC Rule 36(4) Head Wise or Total ITC

ITC / Input 437 views 14 replies

In Rule 36(4), when we check the restriction of 10%, it is to be compared individually 10% head wise(IGST, CGST, SGST) or directly compare with Total ITC ?

Replies (14)

The credit available under sub-rule (4) of rule 36 is linked to total eligible credit from all suppliers against all supplies whose details have been uploaded by the suppliers.

Yes... It's head wise.

Ok thankyou so much.

No it's not head wise , need to be chk consolidated
No... It's headwise only. Not for consolidated... Also no way for consolidated...

It is nowhere mentioned in the law that it is Act wise or consolidated so we can interpret it from both the sides?

Originally posted by : Yash Morakhia
It is nowhere mentioned in the law that it is Act wise or consolidated so we can interpret it from both the sides?

 

May be or Not...

But.,

As per my view it's head wise....

Thanks👍

For Example :

I have ITC Rs. 3 lakhs as per my books (Each 1 lakh in CGST, SGST & IGST). In GSTR2A available as below

CGST - 95000, SGST - 95000 & IGST - No ITC...

Now.,

What Can I do as 10% rule...???

How can I file My GSTR-3B return...???

So in your above example if we consider Head wise, then for CGST and SGST we can claim 95000+10%(subject to ceiling) i.e Rs 1 lakh each and you wont be able to claim under IGST.

However, if we go on consolidated basis, you can claim Total ITC of 209000( 190000 + 10%). Still you wont get credit of Balance 91000. Thats the issue with this rule.

Consolidated...?!
But, No ITC of IGST in GSTR 2A...! Then no way for calculate 10%...
Yes, that's what I said. if we compare head wise then won't be able to take credit
No bro... ITC can't be taken also calculating consolidated. Bcoz, there is zero...

I think it can be taken if we compare total ITC(and not head wise) because total ITC reflecting is 190000 and thus we can take Total ITC of 190k + 10% in 3B thats what I think.


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