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TMI BlogRestriction in availment of input tax credit in terms of sub-rule (4) of rule 36 of CGST Rules, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... iction in availment of input tax credit in terms of sub-rule (4) of rule 36 of CGST Rules, 2017 reg. Sub-rule (4) to rule 36 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the CGST Rules) has been inserted vide 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 37 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act ). 2. To ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents issued under RCM, credit received from ISD etc. which are outside the ambit of sub-section (1) of section 37, provided that eligibility conditions for availment 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 calculat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 37. Sub-rule (4) of rule 36 prescribes that the ITC 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 . 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pliers have furnished in FORM GSTR-1 75 invoices having ITC of ₹ 8.5 lakhs as on the due date of furnishing of the details of outward supplies by the suppliers. ₹ 1,70,000/- ₹ 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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