Reg INPUT tax credit rule 36(4)

Hi! Let me clarify your queries regarding ITC under Rule 36(4) and GSTR-2B timing:

Supplier uploaded invoice in Jan (reflected in Jan GSTR-2B).
You have not received goods in Jan, so as per GST law, ITC can only be claimed when goods/services are received.
According to Section 16(2), ITC can be claimed only if you have received the goods/services and invoice is available.
But Rule 36(4) restricts ITC claim to 105% of GSTR-2B ITC. Since your supplier uploaded invoice in Jan, it's included in Jan GSTR-2B.
You want to claim ITC in Feb when goods received, but Feb GSTR-2B does not include this invoice (as it was uploaded in Jan).
How to avoid breach of Rule 36(4)?

ITC should be claimed only once goods are received, so claim ITC in Feb return.
Rule 36(4) is a restriction on claiming ITC in GSTR-3B based on GSTR-2B.
But if invoice is in Jan GSTR-2B but you claim in Feb, your Feb ITC claim will be higher than Feb GSTR-2B, causing mismatch with Rule 36(4).
So, you must reduce your Jan ITC claim accordingly (i.e., do not claim ITC in Jan), and claim in Feb.
To avoid Rule 36(4) violation, adjust your monthly ITC claims so that cumulatively, you do not exceed 105% of cumulative GSTR-2B ITC.

If you miss claiming ITC in a month’s GSTR-3B, you can claim it in subsequent months up to the due date of filing of return for September following the end of the financial year or date of filing Annual Return, whichever is earlier.
So, if missed, claim in later month’s GSTR-3B with proper documentation.
But remember, Rule 36(4) applies monthly, so your claim should not exceed 105% of GSTR-2B ITC for that month.
You need to ensure that your cumulative ITC claimed does not breach this 105% limit.

Situation	What to do
Invoice uploaded earlier but goods received later	Claim ITC only after receipt of goods; adjust monthly claims to avoid breach of Rule 36(4) cumulatively
Missed ITC claim in a month’s return	Claim in subsequent months within prescribed timelines; keep track of cumulative 105% limit of GSTR-2B ITC

Rule 36(4) restriction applies per month but can be viewed cumulatively over months to avoid undue denial of ITC.
ITC can only be claimed after receipt of goods/services, irrespective of invoice upload date.
Maintain proper reconciliation between invoices received and GSTR-2B data.