Rule 36(4) amended to reduce ITC entitlement for invoices not furnished by supplier from 10% to 5%

• The restriction of claim of Input Tax Credit (“ITC”) in respect of invoices/debit notes not furnished by the suppliers has now been reduced from 10% to 5% of the credit available in GSTR 2B.
• Substituted the word “furnished” in place of the word “uploaded”
• Inserted the words “in FORM GSTR-1 or using the invoice furnishing facility” after the words, brackets and figures “by the suppliers under sub-section (1) of section 37” to align it with the Invoice Furnishing Facility (“IFF”) introduced vide Notification No. 82 /2020-Central Tax dated November 10, 2020.

“(4) Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR-1 or using the invoice furnishing facility, shall not exceed 5 per cent of the eligible credit available in respect of invoices or debit notes the details of which have been furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR-1 or using the invoice furnishing facility. Provided that the said condition shall apply cumulatively for the period February, March, April, May, June, July and August, 2020 and the return in FORM GSTR-3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above.”