HOW TO CALCULATE PROVISIONAL ITC 20

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raghavendra b

raghavendra b (Querist)
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23 December 2019 DEAR SIR,

PLEASE EXPLAIN HOW TO CALCULATE 20% ITC RESTRICTION

REGARDS

RAJA P M

RAJA P M (Expert)
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24 December 2019 Say Your ITC as per Your inward supplies Rs 10000... Ex 1. In GSTR 2A ITC showing 6000 then You can claim 6000+1200 (20% on 6000) = 7200 only... Ex 2. In GSTR 2A ITC showing 9000. We will calculating the 20% rule like 9000+ 1800=10800. After calculating ITC showing excess of book value then You can claim ITC 10000 as per Your book value..

RAJA P M

RAJA P M (Expert)
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24 December 2019 Note : Now the rule will be reducing 20% to 10% in 38 GST Council Meeting. But, No more notifications about the same.

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raghavendra b

raghavendra b (Querist)
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24 December 2019 THANK YOU SIR YOUR KIND REPLIES

REGARDS