FinMin notifies norm limiting ITC to 10% in case of GST details mismatch

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In an effort to curb the menace of fake invoices and tax evasion, the Finance Ministry has notified a new norm of limiting the input tax credit to 10 percent in case of GST details mismatch. Experts feel that this will force businesses to restrict themselves to matched details and ignore the mismatched ones and thus incur losses, which could go into crores for big companies, due to complexities involved. The change in the norm, the second in three months, has been initiated following a decision by the GST Council.

Earlier, in October, the government limited ITC in case of details not uploaded by suppliers to 20 percent which has now been halved. According to a new notification to be effective from January 1, ITC 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, shall not exceed 10 percent of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers.

Read More at: https://www.thehindubusinessline.com/economy/finmin-notifies-norm-limiting-itc-to-10-in-case-of-gst-details-mismatch/article30414907.ece

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