Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

Confusion on 20%itc availment

veera (self) (289 Points)

14 November 2019

As we all know that gst council implement new rule for itc is upto 20% of uploaded invoices.
Most confusing part of this implement is supplier who is filing qutery return. I am also confuse in that case.
How we have to take itc if our suppliers are in quarterly filing?
pls clearify me.
if my question is wrong than pls correct me.

Reply
Follow
Share

17 Replies

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 14 November 2019

👍👍👍👍👍👍👍👍👍👍

( if my question is wrong than pls correct me.)

Your Question is exactly Correct...

The said rule is very confused by dept and also experts...

But,
My view is we can consider the procedure Monthly, Quarterly & Annually.

No more problems...

Upgrade to CAclubindia Pro. Subscribe Now!

Ganga Sundaram (172 Points)
Replied 14 November 2019

I am also having the same confusion. If the supplier files quarterly, i am filing monthly then how can I wait for his filing in GSTR 1

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 14 November 2019

You don't be wait...
Claim ITC as per your inward supplies. Consider the rule quarterly basis...
Now I confirm the same based in following message from GST to one of the client...

( I delete GSTIN here.... The ITC on domestic purchases in Jul-SEP-2019 claimed in GSTR-3B exceeds Rs.1.09 lakh when compared with the credit available in GSTR-2A. )

1 Like

CA Pranav Mishra (241 Points)
Replied 14 November 2019

How to account for ITC flowing from quarterly filers ?
Circular states that the amount of eligible ITC to be derived for computing the permissible ITC shall be considered on the due date of filing of the returns in FORM GSTR-1 of the suppliers for the given tax period. Hence if the due date for filing GSTR – 1 for quarterly filers would not be on 11th of a given month, said ITC would hence not be considered as eligible ITC for computing the permissible ITC. Said conclusion seems to be unreasonable as a tax payer cannot be made to suffer for no fault (especially if the due date is prescribed by the Government itself). Hence a view can be taken that similar to ISD invoices (as permitted by the circular), even ITC pertaining to quarterly return filers can be fully taken.

1 Like

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 14 November 2019

@ Mr CA Pranav Mishra.,

I can't understand Your reply...!
Are You asking the confusion or reply to the confusion...?

Upgrade to CAclubindia Pro. Subscribe Now!

Jyoti Narang (Kkk) (1204 Points)
Replied 14 November 2019

My client got the same msg what Will be the treatment now

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 15 November 2019

@ Mr Jyoti Narang.,

As per my view, We can consider the details monthly, Quarterly & Annually basis...

veera (self) (289 Points)
Replied 15 November 2019

Let suppose Mr A is a quarterly filer who supplied goods to Mr B where Mr B is a monthly filer, at the and of quarter
Mr B get all invoices uploaded in there gstr2A from there quaterly suppliers Mr A or other quaterly filer who have to filed there return on 31st of the next month of quarter end.
So what's the cretria for availment of itc for Mr B at monthly based?

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 15 November 2019

Based on Tax Invoice...

( @ Mr Varra., If fully think about the amended rule with Confusion and disagree my view then give proper reply
or avail the as per rule and Pay tax liability as per rule. it's very simple without discussion or gross questions )

Atul M (aaa) (729 Points)
Replied 15 November 2019

For example, say in the month of April, the input tax credit available (as per books) is Rs 1,500. Out of this, certain vendors wherein input tax credit involved is say Rs 500 have not filed their GSTR-1. Now, due to amendment, the buyer can avail ITC only to the extent of Rs 1,200 (i.e. 120% of R 1,000) and not 1,500.
“This restriction will actually mean that the Companies need to monitor whether the suppliers are uploading their returns on regular basis.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 15 November 2019

Originally posted by : Atul M
	For example, say in the month of April, the input tax credit available (as per books) is Rs 1,500. Out of this, certain vendors wherein input tax credit involved is say Rs 500 have not filed their GSTR-1. Now, due to amendment, the buyer can avail ITC only to the extent of Rs 1,200 (i.e. 120% of R 1,000) and not 1,500.“This restriction will actually mean that the Companies need to monitor whether the suppliers are uploading their returns on regular basis.

Well...

The 1500 to 1200 (1000) is simply then

What is your view if books have 1500000 & 2A have 300000...?

veera (self) (289 Points)
Replied 15 November 2019

You have to point out that eligible itc for that month if all the invoices are related to your business then you can avail eligible itc fully which is reflecting in your gstr2A

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 15 November 2019

Mr. Veera.,

what is Your exact reply...?
All are know ITC in 2A...

What about if not shown...?

For ex :

my (or a taxpayer) Oct outward tax Rs. 14 lakhs

Inward tax Rs 15 lakhs (as per my books)
in GSTR 2A showing only 3 lakhs...

In this condition what can I do...?

give me reply dear all...

1 Like

veera (self) (289 Points)
Replied 15 November 2019

As per notification 49 of ict20% availment
according to that we can only avail only 20% itc on provisional bases of the uploaded invoice which are reflecting in our gsrt 2A it means only 60k of itc we can avail on that particular return. The remaining itc should be carry forwarded for next month. it,s as per my research on that particular topic. if i am incorrect so pls correct me.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!