Circular No. 123/42/2019– GST
F. No. CBEC – 20/06/14/2019 – GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, the 11th November, 2019
The Pr. Chief Commissioners / Chief Commissioners / Principal Commissioners
Commissioners of Central Tax (All),
The Principal Director Generals / Director Generals (All)
Madam / Sir,
Subject: Restriction in availment of input tax credit in terms of sub-rule (4) of rule 36 ofCGST Rules, 2017 – reg.
Sub-rule (4) to rule 36 of the Central Goods and Services Tax Rules, 2017 (hereinafter
referred to as the CGST Rules) has been inserted vide notification No. 49/2019- Central Tax, dated 09.10.2019. The said sub-rule provides restriction in availment of input tax credit (ITC) in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act).
2. To ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168(1) of the CGSTAct hereby clarifies various issues in succeeding paragraphs.
3. The conditions and eligibility for the ITC that may be availed by the recipient shall continue to be governed as per the provisions of Chapter V of the CGST Act and the rules made thereunder. This being a new provision, the restriction is not imposed through the common portal and it is the responsibility of the taxpayer that credit is availed in terms of the said rule and therefore, the availment of restricted credit in terms of sub-rule (4) of rule 36 of CGST
Rules shall be done on a self-assessment basis by the tax payers. Various issues relating to the implementation of the said sub-rule have been examined and the clarification on each of these points is as under: –