Rule 40 of CGST Rules -Manner of claiming credit in special circumstances

Rule 40 of CGST Rules -Manner of claiming credit in special circumstances

(updated as on 15.11.2017)

(1) The input tax creditclaimed in accordance with the provisions of sub-section (1) of section 18 on the inputs heldin stock or inputs contained in semi-finished or finished goods held in stock, or the credit claimed on capital goods in accordance with the provisions of clauses (c) and (d) of the saidsub-section, shall be subject to the following conditions, namely,-

(a) the input tax credit on capital goods, in terms of clauses (c) and (d) of sub-section(1) of section 18, shall be claimed after reducing the tax paid on such capital goodsby five percentage points per quarter of a year or part thereof from the date of theinvoice or such other documents on which the capital goods were received by thetaxable person.

(b) the registered person shall within a period of thirty days from the date ofbecoming eligible to avail the input tax credit under sub-section (1) of section 18, orwithin such further period as may be extended by the Commissioner by a notificationin this behalf, shall make a declaration, electronically, on the common portal inFORM GST ITC-01 to the effect that he is eligible to avail the input tax credit asaforesaid:

Provided that any extension of the time limit notified by the Commissioner of Statetax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner. (Substituted w.ef 01.07.2017, vide Notification No. 22/2017 Central Tax dated 01.07.2017 )

(c) the declaration under clause (b) shall clearly specify the details relating to theinputs held in stock or inputs contained in semi-finished or finished goods held instock, or as the case may be, capital goods

(i) on the day immediately preceding the date from which he becomesliable to pay tax under the provisions of the Act, in the case of a claim underclause (a) of sub-section (1) of section 18;

(ii) on the day immediately preceding the date of the grant of registration,in the case of a claim under clause (b) of sub-section (1) of section 18;

(iii) on the day immediately preceding the date from which he becomesliable to pay tax under section 9, in the case of a claim under clause (c) ofsub-section (1) of section 18;

(iv) on the day immediately preceding the date from which the suppliesmade by the registered person becomes taxable, in the case of a claim underclause (d) of sub-section (1) of section 18;

(d) the details furnished in the declaration under clause (b) shall be duly certified bya practicing chartered accountant or a cost accountant if the aggregate value of theclaim on account of central tax, State tax, Union territory tax and integrated taxexceeds two lakh rupees;

(e) the input tax credit claimed in accordance with the provisions of clauses (c) and(d) of sub-section (1) of section 18 shall be verified with the corresponding detailsfurnished by the corresponding supplier in FORM GSTR-1 or as the case may be,in FORM GSTR- 4, on the common portal.

(2) The amount of credit in the case of supply of capital goods or plant and machinery, forthe purposes of sub-section (6) of section 18, shall be calculated by reducing the input tax onthe said goods at the rate of five percentage points for every quarter or part thereof from thedate of the issue of the invoice for such goods.

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CHAPTER V

INPUT TAX CREDIT

Rule 36 :Documentary requirements and conditions for claiming input tax credit Rule 37 : Reversal of input tax credit in the case of non-payment of consideration Rule 38 :Claim of credit by a banking company or a financial institution Rule 39 :Procedure for distribution of input tax credit by Input Service Distributor Rule 40 :Manner of claiming credit in special circumstances Rule 41 :Transfer of credit on sale, merger, amalgamation, lease or transfer of abusiness Rule 42 :Manner of determination of input tax credit in respect of inputs or input servicesand reversal thereof Rule 43 :Manner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases Rule 44 :Manner of reversal of credit under special circumstances Rule 44A : Manner of reversal of credit of Additional duty of Customs in respect of Golddore bar Rule 45 :Conditions and restrictions in respect of inputs and capital goods sent to the jobworker

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