Clarification relating to application of sub-rule (4) of rule 36 of the GST Rules, 2017 for the months of February, 2020 to August, 2020

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....dated 9th October, 2020 has issued a clarification relating to application of sub-rule (4) of rule 36 of the CGST Rules, 2017 for the months of February, 2020 to August, 2020, in order to ensure uniformity in the implementation of the provisions of law across the field formations, which is annexed herewith. In exercise of powers conferred by section 168 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017) for the purpose of uniformity in the implementation of the Act it is instructed to follow the clarification issued vide Circular No. 142/12/2020-GST, dated 9th October, 2020 by the Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing. Chief Commissioner of State Tax [No. ....

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....es shall apply cumulatively for the tax period February, March, April, May, June, July and August, 2020 and that the return in FORM GSTR-3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months. 3. To ensure uniformity in the implementation of the said provisions across the field formations, the Board, in exercise of its powers conferred under section 168(1) of the CGST Act hereby clarifies certain issues in succeeding paragraphs. 3.1 It is re-iterated that the clarifications issued earlier vide Circular No. 123/42/2019 - GST dated 11.11.2019 shall still remain applicable, except for the cumulative application ....

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....s not mean that the total credit can exceed the tax amount as reflected in the total invoices for the supplies received by the taxpayer i.e. the maximum credit available in terms of provisions of section 16 of the CGST Act. 3.4 The excess ITC availed arising out of reconciliation during this period, if any, shall be required to be reversed in Table 4(B)(2) of FORM GSTR-3B, for the month of September, 2020. Failure to reverse such excess availed ITC on account of cumulative application of sub-rule (4) of rule 36 of the CGST Rules would be treated as availment of ineligible ITC during the month of September, 2020. 4. The manner of cumulative reconciliation for the said months in terms of prov....