rule 36(4)

[sumanta nayak]

If any one taken excess ITC allowed under rule 36(4),but the same invoice uploaded after due date then need reply of the following querries:

1.If he has to reverse ?

2.If yes then how to claim ITC again ?

3.If he has not reversed ,whether the same available at time of scrutiny ?

AI Summary

Input tax credit entitlement limited where supplier filings are pending; excess must be reversed and may be reclaimed later.
Excess ITC claimed where supplier details were not furnished is limited by a 5% threshold; excess must be reversed with interest, and may be reclaimed when the supplier later uploads the invoice. Recovery on scrutiny can include interest and penalties. The position was contested for periods before Oct 2019 and until the Finance Act, 2021 amendment, which inserted a requirement in section 16(2) that supplier outward supply details be filed and communicated to the recipient before ITC can be claimed.