Restriction on electronic input tax credit use allows tax authority to block credits where invoices appear fraudulent or ineligible. Amendment reduces the specified proportion under rule 36 from twenty percent to ten percent effective 1 January 2020. A new rule 86A authorises the Commissioner or an authorised officer to disallow debit from the electronic credit ledger where input tax credit is believed fraudulently availed or ineligible on specified grounds, allows restoration when conditions cease, and provides that such restriction lapses after one year. Rule 138E is amended to add failure to furnish outward supplies for two months or quarters as a trigger.
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Provisions expressly mentioned in the judgment/order text.
Restriction on electronic input tax credit use allows tax authority to block credits where invoices appear fraudulent or ineligible.
Amendment reduces the specified proportion under rule 36 from twenty percent to ten percent effective 1 January 2020. A new rule 86A authorises the Commissioner or an authorised officer to disallow debit from the electronic credit ledger where input tax credit is believed fraudulently availed or ineligible on specified grounds, allows restoration when conditions cease, and provides that such restriction lapses after one year. Rule 138E is amended to add failure to furnish outward supplies for two months or quarters as a trigger.
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