NEW ITC Rule

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Mohit Chaudhary

Student

103 Points Posted on 05 November 2019

If I am having unutilized ITC that is there pending into my credit ledger.

so the query is that should I follow the new rule of ITC which is about 20% of the credit that is shown into the credit ledger.

Should I follow that or I can directly take the credit of all the Invoices that are there with me since I already possess the credit of old invoices into my credit ledger.

Please help as the new rule applicable from October 2019 return of which due date is November 20 2019.

Replies (3)

Surjeet Negi

607 Points Posted on 05 November 2019

The amendment may be effective from 1st October 2019. Thus, effect of same has to be considered, while preparing GSTR-3B of October 2019. However, clarification on applicability of said notification is still awaited from CBIC.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 05 November 2019

@ Mr Mohit.,

Yes... You are correct. This is applicable form October-19 & it's return on or before 20th November 19...

No more restrictions for old ITC which is in Credit Ledger...
Overall You must check out the ITC in every quarter and Year end. Better to check out quarterly and insist Your supplier for filling their returns...

Pankaj Rawat

GST Practitioner

29904 Points Posted on 05 November 2019

As per Notification 49/2019 CT , the said rule has be effective from 9/10/2019,
Hence the rule is applicable for Oct month return ,to be file before 20/11/2019 .

Yes the Unutilized ITC already in Your ECL can be set-off against liability arising in October.
The Rule is applicable for the Credit of Invoice you are having in October in books & Reflected in 2A .