The Central Board of Indirect Taxes and Customs (CBIC) has removed the 5% Provisional ITC, Only ITC Reflected in GSTR-2B can be taken from 1st January 2022.
The Central Board of Indirect Taxes and Customs (CBIC) notified the sections 108, 109, and 113 to 122 of the Finance Act, 2021 to be effective from 1 January 2022.
Section 109 of the Finance Act, 2021 seeks to amend section 16 of the CGST Act wherein sub-section (2), after clause (a), the clause shall be inserted, namely “(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37”.
Earlier, as per sub-rule (4) under Rule 36 of the CGST Rules, 2017, the provisional tax credit (without invoices on GSTR-2B) can be claimed in the GSTR-3B to the extent of 5% of eligible ITC reflected in the GSTR-2B.
As per Rule 36(4) Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been [furnished] by the suppliers under sub-section (1) of section 37, [in FORM GSTR-1 or using the invoice furnishing facility] shall not exceed 5 percent. of the eligible credit available in respect of invoices or debit notes the details of which have been 6[furnished] by the suppliers under sub-section (1) of section 37 [in FORM GSTR-1 or using the invoice furnishing facility.
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