Eligible ITC Claimed as per Rule 36(4)
The Government is bringing many changes to the CGST Rules. One such change involves the insertion of Rule 36(4) in CGST Rules, 2017 with effect from 9th October 2019. This brings out restriction in claiming the Input Tax Credit (referred to as “ITC” ). This raises a lot of question about the ITC claim that the business owners want answers to.
Let us understand more about the modification made
To understand better, here is an example
|Eligible Inputs as per Accounts A||4,00,000||11,00,000|
|Eligible Inputs as reflected in GSTR 2A B||2,00,000||10,50,000|
|Eligible Inputs not in GSTR 2A C||2,00,000||50,000|
|Restriction as per Rule 36(4) D||=2,00,000*10%= 20,000||=10,50,000*10%= 1,05,000 restricted to 50,000|
|Total ITC to be claimed in GSTR 3B B+D||2,20,000||11,00,000|
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