{"id":363,"date":"2019-11-12T05:52:27","date_gmt":"2019-11-12T05:52:27","guid":{"rendered":"https:\/\/mastergst.com\/blog\/?p=363"},"modified":"2022-09-21T04:28:49","modified_gmt":"2022-09-21T04:28:49","slug":"the-total-itc-claimed-should-not-be-more-than-120-of-the-credit-available-as-per-invoices-debit-notes-appearing-in-gstr-2a-rule-364","status":"publish","type":"post","link":"https:\/\/mastergst.com\/blog\/the-total-itc-claimed-should-not-be-more-than-120-of-the-credit-available-as-per-invoices-debit-notes-appearing-in-gstr-2a-rule-364\/","title":{"rendered":"The total ITC claimed should not be more than 120%"},"content":{"rendered":"<h2>The total ITC claimed should not be more than 120% of the credit available as per Invoices \/ Debit notes appearing in GSTR-2A \u2013 Rule 36(4)<\/h2>\n<ul>\n<li>New sub-rule 36(4) has been inserted to specify that the total credit availed on invoices &amp; Debit notes not appearing in GSTR-2A should not exceed 20% of the matched and eligible credit.<\/li>\n<li>The effective date for the same hasn\u2019t been notified. Hence, the same shall be effective from the date of notification, i.e. 09-Oct-2019<br \/>\nExample:<\/li>\n<li>The concept of 20% additional credit has been widely misunderstood by the trade and professionals. To clarify, the same has been explained with an illustration below:<br \/>\nAssume The Following:<\/p>\n<ol>\n<li>The total credit as per the Books of accounts is A = Rs. 500\/-<\/li>\n<li>The full eligible credit of invoices in GSTR-2A matching with invoices in books of accounts is B = Rs. 200\/-<\/li>\n<li>The total credit if invoices only in GSTR-2A is C = Rs. 100\/-<\/li>\n<\/ol>\n<\/li>\n<li>Further, the period for which the above rule should be applied and the frequency of the same has not been specified.<\/li>\n<li>To date, though the department has issued many notices related to the differences between the credit as per GSTR-2A &amp; 3B, there was no final provision to deny the credit on that basis.<\/li>\n<li>Hence, to get a legal backup and to emphasise credit based on GSTR-2A, a new sub-rule has been inserted to specify that the credit availed by the supplier should be supported by the entries in GSTR-2A. However, relaxation has been provided to the extent of 20% of the matched credit.<\/li>\n<li>Although there are multiple arguments on the legal ramification of the amendment, the compliance of the same would lay a good path for compliance with Annexe-2 of new return formats.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The total ITC claimed should not be more than 120% of the credit available as per Invoices \/ Debit notes appearing in GSTR-2A \u2013 Rule 36(4) New sub-rule 36(4) has been inserted to specify that the total credit availed on invoices &amp; Debit notes not appearing in GSTR-2A should not exceed 20% of the matched [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[187],"_links":{"self":[{"href":"https:\/\/mastergst.com\/blog\/wp-json\/wp\/v2\/posts\/363"}],"collection":[{"href":"https:\/\/mastergst.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mastergst.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mastergst.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mastergst.com\/blog\/wp-json\/wp\/v2\/comments?post=363"}],"version-history":[{"count":0,"href":"https:\/\/mastergst.com\/blog\/wp-json\/wp\/v2\/posts\/363\/revisions"}],"wp:attachment":[{"href":"https:\/\/mastergst.com\/blog\/wp-json\/wp\/v2\/media?parent=363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mastergst.com\/blog\/wp-json\/wp\/v2\/categories?post=363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mastergst.com\/blog\/wp-json\/wp\/v2\/tags?post=363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}