GST getting stricter again : Now, ITC will be restricted to 20% if not matching with 2A
Not indication No. 49-2019- Central Tax – Amend Rules
Notification No. 49/2019 has made some critical changes in the CGST Rules which will have far reaching impact.
First and foremost, now ITC in respect of invoices & debit notes which is not uploaded by the suppliers in their GSTR-1 shall not be available fully but shall be restricted to 20%.
It means that eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers in GSTR-1 will not be available fully till it is uploaded by the supplier.
Now, after this amendment, regular matching of ITC with the details available in GSTR-2A will become necessary. Follow-up with non-compliant suppliers to be done on a regular basis now.
Second amendment is done in Rule 61(5) with retrospective effect from 01-07-2017* by making GSTR-3B as the return specified under Section 39, wherever the time limit for filing GSTR-1 or GSTR-2 has been extended.
Impact and purpose is to makethe judgement & observation of the Gujarat High Court in the case of AAP and Company in non-operational.
