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Notification No : 49(CT) dt 09.10.2019, Goods and Services Tax - GST

Issue Id: - 115511
Dated: 10-10-2019
By:- Ragavan Vijayakumar
Notification No : 49(CT) dt 09.10.2019

  • Contents

Dear Export,

Refer : GST (CT) Notification no : 49 dt 09.10.2019

3. In the said rules, in rule 36, after sub-rule (3), the following sub-rule shall be inserted, namely:-

“(4) Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37, shall not exceed 20 per cent. of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37.”.

Kindly explain with suitable example above said point.

Kind Regards


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Posts / Replies

Showing Replies 1 to 15 of 18 Records

1 Dated: 10-10-2019

A person who intends to avail ITC will suffer loss of 80% of ITC (credit being restricted to 20%), if the supplier does not upload the invoices. Non-uploading of invoices by the supplier may result in mismatch between GSTR 2A and GSTR-1/GSTR 3B. 80% loss(fear) is a sort of dis-incentive to the person availing credit so that all-out efforts should be made by the purchaser to force (nay, persuade) the supplier to upload the invoices issued by him (supplier).

Thus matching has become an absolutely must in the interest of the tax payer. After all the burden of proof is cast upon the buyer(who intends to avail ITC) under Section 155 of CGST Act.

2 Dated: 10-10-2019

What Sri Sethi says is absoluely correct.

3 Dated: 11-10-2019
By:- Ganeshan Kalyani

I also agree with the views of Sri Kasturi Sir. This amendment requires a tax payer availing input tax credit to do GSTR 2A reconciliation on a monthly basis and intimate the supplier to upload/correct invoices in his GSTR-1 on monthly basis . This is a welcome step , though 80%credit is blocked if supplier does not upwards the invoice, it shows the total input tax credit available in his purchases. It might happen that tax layer claim major credits like GST on raw material, packing material etc.. but skip taking credit on telephone bills, repairing , air fare, cha Bill's etc. Now with the mandatory of reconciling 2A on monthly basis maximum input tax credit would emerge.

4 Dated: 11-10-2019

I like to add that the capping of 20% of availment of ITC is in respect of only those invoices which are missed (not uploaded) by the supplier during a month or tax period.

5 Dated: 11-10-2019

In Fact it is buyer responsibility to collect taxes, I am not agree with this notification, genuine Buyer suffer lot. and what is the remedy if suppler filed quarterly returns. same will be appearing after the three months. further it is not cleared about 20% of ITC of CGST/SGST/IGST

As per my view collect the taxes is responsibility of tax officer not Buyer.

6 Dated: 11-10-2019

Yes. Sir I agree with you in toto. I have just explained the Notification. Why should buyer suffer without his fault ?

7 Dated: 12-10-2019
By:- Shyam Naik

The quantification of restriction on availing input credit is with reference to amount of invoices uploaded by suppliers.

For example, total input credit for a month is ₹ 120000/-. Input credit to the extent of ₹ 100000/- is reflected in GSTR-2A. The receipient can avail full credit, as ₹ 20000/- is within 20% of 100000/-(reflected in GSTR-2A).

In the above example, if only ₹ 15000/- is reflected in GSTR-2A, then the amount of eligible credit would be ₹ 18000/-{15000/-(As per GSTR-2A) + ₹ 3000/-(being 20% of ₹ 15000/- or ₹ 105000/- which ever is lower.}. Loss of credit is ₹ 102000/-. Loss % is 85%(102000/120000*100).

This provision shall not stand test of legal scrutiny. Recipient can not be penalized for no fault on his part.

8 Dated: 12-10-2019
By:- Ganeshan Kalyani

I agree with the working of Sri Shyam Sir. Now, every company has to have a full time tax person whose job would be to call the supplier and persuade him to upload the invoice. And if he has uploaded but with incorrect details then ask him to correct the same. In such scenario, it is worth thinking of changing the GST clause in the agreement executed with the supplier.

9 Dated: 12-10-2019
By:- Alkesh Jani

Dear Experts,

For sake of my knowledge, what if buyer avails 20% and later supplier files the return? what will be the scenario if supplier is filing return on quarterly basis and buyer is filing on monthly basis?

Further, (for brevity) Section 11(1) clearly states..... "from the whole or any part of the tax leviable thereon with effect...."

The section 16 nowhere even remotely indicates of any part of ITC. when no such expressed words is used, can this notification (however conditions and restriction can be of whole) empowers government for such ceiling of 20% ITC?

Thanks in advance

With Regards.

10 Dated: 12-10-2019
By:- Ganeshan Kalyani

Sri Alkesh Ji , your concern holds good. The Govt is haste is incorporating changes in the law, may be to increase the GST revenue. The govt is not getting the envisaged revenue. Lot of defaulters are evading tax. Beacuse of them the genuine tax payer suffers.

11 Dated: 13-10-2019
By:- Shyam Naik

This provision should be challanged immediately by of writ petition.

It is Government's duty to enforce the supplier to file appropriate return.

There are many cases in VAT matters, where ITC has been allowed in cases the supplier have not reported sales The legal provision to disallow ITC has been struck down by High Courts

12 Dated: 13-10-2019
By:- Alkesh Jani

Dear Experts,

I wish to raise a query in addition to raise earlier

(1) When GSTR-2 and GSTR-3, filing date is yet to be notified (Section 37 & 38), then on what ground filing of GSTR-2A (part of GSTR-2) and GSTR-3B (Part of GSTR-3) can be base for availment of ITC?

Thanks in advance.

With Regards

13 Dated: 13-10-2019
By:- Madhavan iyengar

All experts have given their very good analysis

I would like to add following:

Reflection of credit in GSTR-2A is not the only criteria since 2A contains all eligible and ineligible credit ( ie negative list) so the bifurcation of ineligible credit is to be done and taken out, to determine the eligible ITC for a particular month and thereafter the rules of 20% to be applied on the eligible ITC

Experts please clarify from when this would become applicable ie from Month of October 2019 or date to be notified

14 Dated: 14-10-2019

The subject notification does not appear to be in letter and spirit of Section 16 of CGST Act.

15 Dated: 14-10-2019
By:- Alkesh Jani

DearKasturiji Sir,

I agree with you further wish to add that the said notification is also not in harmony with the provisions of Section 42 and Rule 69 of CGST Act, and Rules respectively.


With Regards


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