Quick Summary
F. No. CBIC/20/06/14/2020-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing New Delhi, the 9th October, 2020 To The Pr. Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All), The Principal Director Generals / Director Generals (All) Madam / Sir, Subject: Clarification relating to application of sub-rule (4) of rule 36 of the CGST Rules, 2017 for the m
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
FAQ :
The clarification relates to the application of sub-rule (4) of rule 36 of the CGST Rules, 2017, concerning the availment of input tax credit (ITC) for invoices not yet uploaded by suppliers, specifically for the period February 2020 to August 2020.
For the months of February to August 2020, the condition under sub-rule (4) of rule 36 of the CGST Rules was applied cumulatively. This meant that the total ITC claimed across these months had to be reconciled.
Taxpayers could claim a cumulative ITC for February to August 2020 that did not exceed 110% of the cumulative value of eligible credit from invoices uploaded by their suppliers.
If excess ITC was claimed during the February to August 2020 period due to the cumulative application of the rule, it must be reversed in Table 4(B)(2) of the GSTR-3B for the month of September 2020.
Taxpayers needed to reconcile the ITC availed in their GSTR-3Bs for February to August 2020 with the supplier-uploaded invoice details by the due date for furnishing the GSTR-1 for September 2020.
No, the availability of 110% of the cumulative eligible credit does not mean the total credit can exceed the tax amount reflected in the total invoices for supplies received by the taxpayer, as per section 16 of the CGST Act.
CAclubindia
