ITC-Notifications

1)Up to 08-10-2019 there is no restriction to avail the credit subject to Section -16(2) & 17(5)

2)Notification: 49/2019-CT, From 09-10-2019 , which provides that input tax credit to be availed by the registered person in respect of invoices and debit notes, the details which are not uploaded by the supplier shall not exceed 20 % of the Eligible Credit in respect of  invoices and debit notes for which invoices have been uploaded by the supplier.

3)Notification: 75/2019-CT. From 01.01.2020 onwards said 20 % restricted to 10%

4)Notification : 94/2020-CT. From 01.01.2021 onwards said 10% restricted to 5%

5)Notification: 39/2021-CT. With effect from 01.01.2022 to add  following clause in section 16(2):

"(aa)" the details of the invoice or debit note referred ti tub 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"  

Note: Till this amendment there is no condition in section 16(2) which requires that credit amount shall be reflected in GSTR-2A. The sub-clause (aa) proposed to be added in Section 16(2) seeks to provide that the credit amount shall be reflected in GSTR-2A.

6)Notification :40/2021-CT. With Effect from 01.01.2022 made the amendment to Rule-36(4) , No Input Credit shall be available by the registered person in respect of invoices or debit notes, unless the details of which has not furnished by the supplier in the statement of outward supply or invoice furnishing facility and the details of such invoices or debit notes have not been communicated to registered person in Form-GSTR-2B under Rule-60(7) of the GST-Rules.

94/2020-CT, Dt: 22/12/2020

With effect from the 1st day of January, 2021, the following rule shall be inserted, namely: -

“Rule: 86B. Restrictions on use of amount available in electronic credit ledger.-

Notwithstanding anything contained in these rules, the registered person shall not use the amount available in electronic credit ledger to discharge his liability towards output tax in excess of ninety-nine per cent. of such tax liability, in cases where the value of taxable supply other than exempt supply and zero-rated supply, in a month exceeds fifty lakh rupees:

Provided that the said restriction shall not apply -

(a) the said person or the proprietor or karta or the managing director or any of its two partners, whole-time Directors, Members of Managing Committee of Associations or Board of Trustees, as the case may be, have paid more than one lakh rupees as income tax under the Income-tax Act, 1961(43 of 1961) in each of the last two financial years for which the time limit to file return of income under subsection (1) of section 139 of the said Act has expired; or

(b) the registered person has received a refund amount of more than one lakh rupees in the preceding financial year on account of un utilised input tax credit under clause (i) of first proviso of sub-section (3) of section 54; or

(c) the registered person has received a refund amount of more than one lakh rupees in the preceding financial year on account of un utilised input tax credit under clause (ii) of first proviso of sub-section (3) of section 54; or

(d) the registered person has discharged his liability towards output tax through the electronic cash ledger for an amount which is in excess of 1% of the total output tax liability, applied cumulatively, upto the said month in the current financial year; or

(e) the registered person is – 

(i) Government Department; or

(ii) a Public Sector Undertaking; or

(iii)a local authority; or

(iv) a statutory body:

Notification: 14/2022-CT, Dt: 05/07/2022

a)6.c.A registered person may, on the common portal, transfer any amount of tax,interest, penalty, fee or any other amount available in the electronic cash ledger under the Act to the electronic cash ledger for central tax or integrated tax of a distinct person as specified in sub-section (4) or, as the case may be, sub-section (5) of section 25, in FORM GST PMT-09:

Provided that no such transfer shall be allowed if the said registered person has any unpaid liability in his electronic liability register