TMI BlogRestriction in availment of input tax credit in terms of subrule (4) of rule 36 of APGST Rules, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... ST Rules) has been inserted vide notification issued in the G.O.Ms.No.470, Revenue (Commercial Taxes-II) Department, Dated 21.11.2019 /Notification No. 49/2019-Central Tax. Dated 09.10.2019. The said sub-rule provides restriction in 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 37of the Andhra Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as the APGST Act). 2. To ensure uniformity in the implementation of the provisions of the law across the field formations, the Chief Commissioner, in exercise of his powers conferred under section 168(1) of the APGST Act hereby clarifies various is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ITC are met in respect of the same. The restriction of 36(4) will be applicable only on the invoices / debit notes on which credit is availed after 09.10.2019. 2. Whether the said 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 unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The eligible ITC that can be availed is 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 8,50,000/- + ₹ 1,50,000/-* = ₹ 10,00,000 * The additional amount of ITC availed shall be limited to ensure that the total ITC availed does not exceed the total eligible ITC. 5. When can balance ITC be claimed in case availment of ITC is restricted as per the provisions of rule 36(4)? 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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