CBIC removes 5percent Provisional ITC, lone ITC Reflected in GSTR-2B from 1st Jan 2022

The 5 percent Provisional ITC has been removed by The Central Board of Indirect Taxes and Customs (CBIC). Only the provisional

By :  Legal Era
Update: 2021-12-22 05:45 GMT
trueasdfstory

CBIC removes 5percent Provisional ITC, lone ITC Reflected in GSTR-2B from 1st Jan 2022 The 5 percent Provisional ITC has been removed by The Central Board of Indirect Taxes and Customs (CBIC). Only the provisional ITC reflected in GSTR-2B will be allowed from 1st January 2022 onwards. The sections 108, 109, 113, and 122 of the Finance Act, 2021 were notified by the Central Board of...


CBIC removes 5percent Provisional ITC, lone ITC Reflected in GSTR-2B from 1st Jan 2022

The 5 percent Provisional ITC has been removed by The Central Board of Indirect Taxes and Customs (CBIC). Only the provisional ITC reflected in GSTR-2B will be allowed from 1st January 2022 onwards.

The sections 108, 109, 113, and 122 of the Finance Act, 2021 were notified by the Central Board of Indirect Taxes and Customs (CBIC) to be effective from January 1, 2022.

By its Section 109, the Finance Act of 2021 seeks to amend section 16 of the CGST Act, wherein sub-section (2), after clause (a), a clause is to be inserted, namely "(aa) the details of the invoice or debit note referred to in clause (a) has been provided by the supplier in the statement of outward supplies and have been provided in the manner specified under section 37 to the recipient of the invoice or debit note".

Previously, if the provisional tax credit (without invoices attached to GSTR-2B) is claimed in GSTR-3B, it is limited to 5 percent of the eligible ITC reflected in GSTR-2B under sub-rule (4) in Rule 36 of the CGST Rules, 2017.

The amount of input tax credit that can be claimed by a registered person in respect of invoices or debit notes, the details of which have not been [furnished] by suppliers under sub-section (1) of section 37, [in FORM GSTR-1 or by using the invoice furnishing facility] shall not exceed 5 percent. According to subsection (1) of section 37, all eligible credit is available to suppliers in respect of invoices and debit notes regarding which details have been 6[furnished] in Form GSTR-1 or by using the invoice furnishing facility.

Tags:    

By - Legal Era

Similar News