Legislative Competence of Rule 36(4) of CGST Rules 2017

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..... Legislative Competence of Rule 36(4) of CGST Rules 2017
By: - Rachit Agarwal
Goods and Services Tax - GST
Dated:- 21-5-2020

* Rule 36(4) was inserted vide Notification No- 49/2019- Central Tax dated 09.10.2019 subsequently amended vide Notification No- 30/2020 Central Tax dated 03.04.2020 * Condition for the availment of the Credit under Rule 36(4) of CGST Rules 2017 that credit .....

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..... of input tax for the invoices not uploaded by the supplier shall be limited to 10% of subject to invoices uploaded by the supplier * Rule 36(4) was notified vide power conferred to the Central Government u/s 164 of the CGST Act, 2017 * As per Clause 164 of the Central Goods and Services Bill, 2017 which was introduced in the Lok Sabha seeks to empower the Central Government to make rules, (d) .....

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..... conditions and restrictions on availing input tax credit and categories of tax paying documents under section 16; * Hence Clause 164 of the CGST Bills, 2017 can makes rules. * However Clause 164 of CGST Bill, 2017 have not conferred the power to impose restrictions and conditions on availing the credit of Input Tax. * Clause 164 of CGST Bills, 2017 gives the power to make procedural rules o .....

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..... nly. * Hence Rule 36(4) of CGST Rules 2017 imposing restriction on the availment of the credit of input subject to uploading of the invoices by the supplier is without Legislative Competence. * Rule 36(4) being the procedural provision and hence the substantive right cannot be denied due to procedural lapses.
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