GSTR-2B and Rule 36(4) Validity

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CA Ronak Khandelwal | Jun 7, 2021 | Views 1334039

GSTR-2B and Rule 36(4) Validity

GSTR-2B and Rule 36(4) Validity

Question (1) Whether GSTR-2B Legally Recognized.

Question (2) Validity of Rule 36(4) as per GST law


  • Input tax credit to be availed by a registered person
  • Respect of invoices or debit notes
  • Details of which have not been furnished by the suppliers
  • FORM GSTR-1 or using the invoice furnishing facility
  • Not exceed 5 percent Of the eligible credit available

Conditions to Avail GST Input Tax credit prescribed in sec 16(2)

(a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed.

(b) he has received the goods or services or both.

(c) subject to the provisions of section 41 or section 43A, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through the utilization of input tax credit admissible in respect of the said supply.

 (d) he has furnished the return under section 39.

Prescribed four conditions nothing speak about GSTR-2A & GSTR-2B, So Rule not prevail section 16(2) section.

Now another discussion that after understanding 16(2) and rule-36(4) Government Realized something contravention exist in section & rule, so amending section 16(2) by adding one more condition sub-clause aa

16(2) (aa) input tax credit on invoice or debit note may be availed only when the details of such invoice or debit note have 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.

***Section 16(2)(aa) yet not notified

Effects of New Sub-clause 16(2)(aa)

  • ITC cannot be availed beyond GSTR-2A/2B {Depending on the language used in 16(2)(aa)}
  • No concept of Provisional Credit.
  • If GSTR-1 filled by the supplier beyond the cutoff date, then ITC will be lost. {Depending on the language used in 16(2)(aa)}

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