Notification No : 49(CT) dt 09.10.2019

[Ragavan Vijayakumar]

Dear Export,

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

AI Summary

Input tax credit restriction limits unuploaded-invoice credits, forcing buyers to perform monthly supplier reconciliation and verification.
Insertion of sub-rule (4) to Rule 36 restricts the amount of input tax credit a registered person may claim for invoices or debit notes not uploaded by suppliers; the recipient's entitlement in respect of such unuploaded invoices is limited to a proportion of the eligible credit evidenced by supplier-uploaded records for the period, creating a monthly obligation to reconcile GSTR-2A and prompt suppliers to upload or correct invoices.