GST: ITC can’t be availed on Failure of Supplier to furnish details of Invoices or Debit Notes in FORM GSTR-1 or using IFF, says CBIC [Read Notification]

The Central Board of Indirect Taxes and Customs (CBIC) has notified that the Input Tax Credit (ITC) cannot be availed on the failure of a supplier to furnish details of invoices or debit notes in FORM GSTR-1 or using Invoice Furnishing Facility (IFF).

The Board has notified Central Goods and Services Tax (Tenth Amendment) Rules, 2021 which seeks to amend Central Goods and Services Tax Rules, 2017.

In the Central Goods and Services Tax Rules, 2017, in rule 36, for sub-rule (4), the sub-rule shall be substituted, with effect from the 1st January 2022, namely, “no input tax credit shall be availed by a registered person in respect of invoices or debit notes the details of which are required to be furnished under sub-section (1) of section 37 unless, the details of such invoices or debit notes have been furnished by the supplier in the statement of outward supplies in FORM GSTR-1 or using the invoice furnishing facility, and the details of such invoices or debit notes have been communicated to the registered person in FORM GSTR-2B under sub-rule (7) of rule 60.

In rule 80, sub-rule (1A), shall be inserted, namely “Notwithstanding anything contained in sub-rule (1), for the financial year 2020-2021 the said annual return shall be furnished on or before the twenty-eighth day of February 2022; sub-rule (3A), shall be inserted, namely Notwithstanding anything contained in sub-rule (3), for the financial year 2020-2021 the said self-certified reconciliation statement shall be furnished along with the said annual return on or before the twenty-eighth day of February 2022.

In rule 95, in sub-rule (3), after clause (c), the proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st April 2021, namely “Provided that where Unique Identity Number of the applicant is not mentioned in a tax invoice, the refund of tax paid by the applicant on such invoice shall be available only if the copy of the invoice, duly attested by the authorized representative of the applicant, is submitted along with the refund application in FORM GST RFD-10.

In rule 142, with effect from the 1st January 2022, in sub-rule (3), for the words and letters, “fourteen days of detention or seizure of the goods and conveyance”, the words, brackets, and figures, “seven days of the notice issued under sub-section (3) of Section 129 but before the issuance of order under the said sub-section (3)” shall be substituted; in sub-rule (5), for the words, “tax, interest, and penalty payable by the person chargeable with tax”, the words, “tax, interest, and penalty, as the case may be, payable by the person concerned” shall be substituted.

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