Notification No : 49(CT) dt 09.10.2019

This query is : Resolved

ragavan (Querist)
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10 October 2019 Dear Experts,

Refer : GST (CT) Notification no : 49 dt 09.10.2019

3. In the said rules, in rule 36, after sub-rule (3), the following sub-rule shall be inserted, namely:-
“(4) Input tax credit 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.”.

Kindly explain with suitable example above said point.

Kind Regards

V.Ragavan

CA Anita Bhadra

CA Anita Bhadra (Expert)
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10 October 2019 Example -
You are a recipient and purchased goods worth Rs 100000. In case your supplier has file GSTR 1 indicating details pertaining to the invoice , you are eligible for ITC 18000( assuming rate is 18% )
And if your supplier has not enter invoice detail in GSTR 1 or not filed GSTR 1 , you can claim ITC on the said bill only upto Rs 3600/- ( 20% of Rs 18000)

ragavan

ragavan (Querist)
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10 October 2019 Thanks for your clear explanation.

and i have one more.

for example.

Ragavan & company purchase Invoice no: 218 dated 10.10.2019 value of goods @ 1,00,000/- 18% GST attract @ 18,000 from Ganesh & Company, But Ganesh & Company files Quaterly return only. (i.e below 1.5 Crore company) Ganesh & Company submit the GSTR 1 after 31.12.2019.

Now my doubt is upto 31.12.2019 Ragavan & Company not able to get GST credit to GST Portal. so he eligible only 20% of GST Credit utilized ? (i.e 3,600/-)

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CA Anita Bhadra

CA Anita Bhadra (Expert)
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10 October 2019 Still lot of confusion is there in the notification ,, clarification is awaited
In example given in my reply itself , there is an amendment ( after discussions with expert , it was clarified )

Amended example is :
You are a recipient and purchased goods worth Rs 100000. In case your supplier has file GSTR 1 indicating details pertaining to the invoice , you are eligible for ITC 18000( assuming rate is 18% )

In case , he has not filed return / uploaded invoice , and your purchase from other suppliers is 200000 and they indicated correctly and file returns . Your eligible credit from other supplier is 36000/-.
You can claim ITC Rs 36000/- plus 20% of Rs 36000/- as provisional credit
It means provisional credit on invoices not uploaded by the supplier will be restricted to 20% of eligible credit uploaded by the suppliers