To give effect to the decisions taken in the 38th GST Council Meeting, Central Board of Indirect Taxes & Customs (“CBIC”) vide Notification No. 75/2019 – Central Tax dated December 26, 2019 has notified a specific amendment in Central Goods and Services Tax Rules, 2017 (“CGST Rules”) reducing the percentage of eligible ITC available for Availment, the details of which have not been shown by the supplier in GSTR-1.
The CBIC, vide Notification No. 49/2019 – Central Tax dated October 9, 2019, had earlier, inter alia, inserted a new sub-rule (4) to Rule 36 of the CGST Rules which states that a registered person can claim ITC in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers in GSTR-01 (i.e. not getting reflected in Form GSTR-2A) only to the extent of 20% of the eligible credit available in respect of invoices or debit notes, the details of which have been uploaded by the suppliers.
In Rule 36(4) of the CGST Rules, the figures & words “10 per cent” have been substituted for the original figures & words of “20 per cent” with effect from January 1st, 2020.
Therefore now, the facility to avail ITC in respect of invoices or debit notes, the details of which have not been uploaded by suppliers in GSTR-1 has been further restricted to only 10% of the total eligible credit.