TMI BlogRestriction in availment of input tax credit in terms of sub-rule (4) of rule 36 of KGST Rules. 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... ide Notification (4-F/2019) No. FD 47 CSL 2017, dated 30.10.2019. The said sub-rule provides for restriction on availment of input tax credit (ITC) 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 of the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the KGST Act). 2. To ensure uniformity in the implementation of the provisions of the law across the field formations, in exercise of powers conferred under section 168(1) of the KGST Act, various issues are hereby clarified in succeeding paragraphs. 3. The conditions and eligibility for the ITC that may be availed by the recipient shall continue to be governed as per the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... restriction is to be calculated supplier wise or on consolidated basis? The restriction imposed is not supplier wise. 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. Further, the calculation would be based on only those invoices which are otherwise eligible for ITC. Accordingly, those invoices on which ITC is not available under any of the provision (say under sub-section (5) of section 17) would not be considered for calculating 20 per cent. of the eligible credit available. 3. FORM GSTR-2A being a dynamic document, what would be the amount of input tax credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explained by way of illustrations, in a tabulated form, below. In the illustrations, say a taxpayer R receives 100 invoices (for inward supply of goods or services) involving ITC of Rs. 10 lakhs, from various suppliers during the month of Oct, 2019 and has to claim ITC in his FORM GSTR-3B of October, to be filed by 20th Nov, 2019. Details of suppliers invoices for which recipient is eligible to take ITC 20% of eligible credit where invoices are uploaded Eligible ITC to be taken in GSTR-3B to be filed by 20th Nov. Case 1 Suppliers have furnished in FORM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The balance ITC may be claimed by the taxpayer in any of the succeeding months provided details of requisite invoices are uploaded by the suppliers. He can claim proportionate ITC as and when details of some invoices are uploaded by the suppliers provided that credit on invoices, the details of which are not uploaded (under sub-section (1) of section 37) remains under 20 per cent of the eligible input tax credit, the details of which are uploaded by the suppliers. Full ITC of balance amount may be availed, in present illustration by R , in case total ITC pertaining to invoices the details of which have been uploaded reaches ₹ 8.3 lakhs (₹ 10 lakhs /1.20). In other words, taxpayer may avail full ITC in respect of a tax p ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
