New Rule 36(4) Calculation of 20% on ITC Self-Assessment Basis

CBIC has issued clarification on New Rule 36(4) regarding 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.

Notification No. 49/2019- Central Tax, dated 09.10.2019, inserted new rule 36(4) provides “Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under sub-section (1) of section 37, shall not exceed 20 per cent. of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers under sub-section (1) of section 37.”.

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 rule 36(4) of CGST Rules shall be done on self-assessment basis by the tax payers.

Various issues relating to implementation of the said sub-rule have been examined and the clarification on each of these points is as under: –

Issue 1:- What are the invoices / debit notes on which the restriction under rule 36(4) of the CGST Rules shall apply?

Clarification: The restriction of availment of ITC is imposed only in respect of those invoices / debit notes, details of which are required to be uploaded by the suppliers under section 37(1) and which have not been uploaded.
Therefore, taxpayers may avail full ITC in respect of IGST paid on import, documents issued under RCM, credit received from ISD etc. which are outside the ambit of sub-section (1) of section 37, provided that eligibility conditions for availment of ITC are met in respect of the same. The restriction of 36(4) will be applicable only on the invoices / debit notes on which credit is availed after 09.10.2019.

Issue 2:- Whether the said restriction is to be calculated supplier wise or on consolidated basis?

Clarification: The restriction imposed is not supplier wise. The credit available under sub-rule (4) of rule 36 is linked to total eligible credit from all suppliers against all supplies whose details have been uploaded by the suppliers. Further, the calculation would be based on only those invoices which are otherwise eligible for ITC. Accordingly, those invoices on which ITC is not available under any of the provision (say under sub-section (5) of section 17) would not be considered for calculating 20 per cent. of the eligible credit available.

Issue 3:- FORM GSTR-2A being a dynamic document, what would be the amount of input tax credit that is admissible to the taxpayers for a particular tax period in respect of invoices / debit notes whose details have not been uploaded by the suppliers?
Clarification: The amount of input tax credit in respect of the invoices / debit notes whose details have not been uploaded by the suppliers shall not exceed 20% of the eligible input tax credit available to the recipient in respect of invoices or debit notes the details of which have been uploaded by the suppliers under section 37(1) as on the due date of filing of the returns in FORM GSTR-1 of the suppliers for the said tax period. The taxpayer may have to ascertain the same from his auto populated FORM GSTR 2A as available on the due date of filing of FORM GSTR-1 under section 37(1).

Issue 4:- How much ITC a registered tax payer can avail in his FORM GSTR-3B in a month in case the details of some of the invoices have not been uploaded by the suppliers under subsection (1) of section 37?
Clarification:
Rule 36(4) prescribes that the ITC to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded by the suppliers under section 37(1), shall not exceed 20 per cent. of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded by the suppliers under section 37(1).

The eligible ITC that can be availed is explained by way of illustrations
A taxpayer “R” receives 100 invoices (for inward supply of goods or services) involving ITC of Rs. 10 lakhs, from various suppliers during the month of Oct, 2019 and has to claim ITC in his FORM GSTR-3B of October, to be filed by 20th Nov, 2019.

Issue 5:- When can balance ITC be claimed in case availment of ITC is restricted as per the provisions of rule 36(4)?
Clarification:
The balance ITC may be claimed by the taxpayer in any of the succeeding months provided details of requisite invoices are uploaded by the suppliers. He can claim proportionate ITC as and when details of some invoices are uploaded by the suppliers provided that credit on invoices, the details of which are not uploaded (under section 37(1) remains under 20 per cent of the eligible input tax credit, the details of which are uploaded by the suppliers. Full ITC of balance amount may be availed,
In present illustration by “R”, in case total ITC pertaining to invoices the details of which have been uploaded reaches Rs. 8.3 lakhs (Rs 10 lakhs /1.20).
In other words, taxpayer may avail full ITC in respect of a tax period, as and when the invoices are uploaded by the suppliers to the extent Eligible ITC/ 1.20


Case 1 “R” may avail balance ITC of Rs. 2.8 lakhs in case suppliers upload details of some of the invoices for the tax period involving ITC of Rs. 2.3 lakhs out of invoices involving ITC of Rs. 4 lakhs details of which had not been uploaded by the suppliers. [Rs. 6 lakhs + Rs. 2.3 lakhs = Rs. 8.3 lakhs]

Case 2 “R” may avail balance ITC of Rs. 1.6 lakhs in case suppliers upload details of some of the invoices involving ITC of Rs. 1.3 lakhs out of outstanding invoices involving Rs. 3 lakhs. [Rs. 7 lakhs + Rs. 1.3 lakhs = Rs. 8.3 lakhs]

Source : CBIC Clarification

13,313 thoughts on “New Rule 36(4) Calculation of 20% on ITC Self-Assessment Basis

  1. I definitely wanted to develop a small message to express gratitude to you for the unique information you are writing here. My rather long internet investigation has finally been honored with incredibly good facts and strategies to share with my colleagues. I would repeat that we website visitors actually are undoubtedly endowed to dwell in a great site with many brilliant individuals with very helpful hints. I feel somewhat fortunate to have come across your entire webpage and look forward to so many more pleasurable times reading here. Thanks a lot again for everything.

  2. Wonderful goods from you, man. I have understand your stuff previous to and you are just too wonderful. I actually like what you have acquired here, really like what you’re saying and the way in which you say it. You make it enjoyable and you still take care of to keep it smart. I cant wait to read much more from you. This is really a wonderful site.

  3. You really make it seem so easy with your presentation but I find this topic
    to be actually something which I think I would never
    understand. It seems too complicated and extremely broad for me.

    I am looking forward for your next post, I will try to get
    the hang of it!

  4. Everything is very open with a very clear description of the issues.
    It was definitely informative. Your website is very useful.
    Many thanks for sharing!

  5. Hi! This is my first comment here so I just wanted to give a quick shout out
    and say I really enjoy reading through your posts. Can you suggest any other blogs/websites/forums
    that go over the same topics? Thank you so much!

  6. hi!,I like your writing very a lot! percentage we be in contact extra approximately your
    article on AOL? I need a specialist in this house to unravel my problem.
    May be that is you! Looking ahead to look you.

  7. I was wondering if you ever thought of changing the page layout of your website?
    Its very well written; I love what youve got to say.
    But maybe you could a little more in the way of content so people could connect with it better.
    Youve got an awful lot of text for only having 1 or two pictures.
    Maybe you could space it out better?

  8. Quality articles or reviews is the important to be a
    focus for the users to go to see the web page, that’s what this
    website is providing.

  9. Hey there! Someone in my Facebook group shared this
    site with us so I came to give it a look. I’m definitely enjoying the information. I’m bookmarking and will be tweeting this to my
    followers! Wonderful blog and outstanding design and style.

  10. Aw, this was an incredibly nice post. Spending some time and actual effort to generate a great article… but what can I say… I put things off a lot and don’t manage to get nearly anything done.

  11. This is a very good tip particularly to those fresh to the blogosphere. Brief but very accurate informationÖ Appreciate your sharing this one. A must read article!

  12. What’s up to every body, it’s my first visit of this website; this weblog consists of remarkable and
    genuinely good stuff designed for readers.

  13. Hi there! Do you know if they make any pluginsto help with SEO? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good gains.If you know of any please share. Cheers!

  14. You could certainly see your skills within the article you write.The arena hopes for even more passionate writers such as you who aren’tafraid to mention how they believe. Always followyour heart.

  15. Everyone loves what you guys are usually up too. This kind of clever work and exposure!

    Keep up the excellent works guys I’ve added you
    guys to my blogroll.

  16. Awesome blog! Do you have any tips and hints for aspiring writers?
    I’m planning to start my own site soon but I’m a little lost on everything.
    Would you suggest starting with a free platform like WordPress or go for a paid option? There are
    so many options out there that I’m completely overwhelmed ..
    Any recommendations? Thanks!

  17. I do accept as true with all the ideas you’ve offered to your post. They are very convincing and will definitely work. Nonetheless, the posts are too short for novices. Could you please lengthen them a little from next time? Thank you for the post.

  18. Hi there! This is my first visit to your blog!We are a collection of volunteers and starting a new project in a community in the same niche.Your blog provided us beneficial information to work on. You have done awonderful job!

  19. This design is spectacular! You most certainly know how to keep a reader
    amused. Between your wit and your videos, I was almost
    moved to start my own blog (well, almost…HaHa!) Wonderful job.
    I really loved what you had to say, and more than that, how you presented it.
    Too cool!

  20. Thanks, I’ve just been searching for info about this subject for ages and yours is the greatest I’ve came upon till now. However, what about the bottom line? Are you certain in regards to the supply?

  21. After looking into a few of the articles on your blog, I honestly appreciate your
    technique of writing a blog. I book marked it to
    my bookmark webpage list and will be checking back soon. Take
    a look at my web site too and tell me what you think.

  22. Pingback: bahis siteleri
  23. Tin Tức, Sự Khiếu Nại Liên Quan Tiền Đến Trực Tiếp Bóng Đá Phái Nữ trực tiếp bóng đá nhà cáiĐội tuyển chọn nước Việt Nam chỉ cần một kết trái hòa có bàn thắng để lần loại hai góp mặt trên World Cup futsal. Nhưng, để làm được điều đó

  24. I would like to thnkx for the efforts you have put in writing this website. I am hoping the same high-grade blog post from you in the upcoming as well. In fact your creative writing abilities has encouraged me to get my own web site now. Actually the blogging is spreading its wings fast. Your write up is a good example of it.

  25. Hello! I’ve been reading your web site for a while now and finally got the bravery to go ahead and give you a shout out from
    Humble Texas! Just wanted to mention keep up the fantastic work!

  26. Hello There. I found your blog using msn. This is a really well written article. I will be sure to bookmark it and come back to read more of your useful information. Thanks for the post. I will definitely comeback.

  27. It really is nearly impossible to find well-updated users on this niche, nonetheless you come across as like you be aware of the things you’re revealing! Thanks A Lot

  28. I am not sure where you are getting your info, butgood topic. I needs to spend some time learning more orunderstanding more. Thanks for wonderful information I was looking forthis info for my mission.

  29. Great post. I was checking constantly this blog and I am impressed!Very useful info specially the last part 🙂 I care for such info much.I was looking for this particular information for a very long time.Thank you and best of luck.

  30. I blog quite often and I really appreciate your information. Your article has really peaked my interest. I am going to bookmark your blog and keep checking for new information about once per week. I subscribed to your RSS feed too.

  31. Great blog right here! Also your web site quite a bit up fast! What web host are you using? Can I am getting your affiliate hyperlink in your host? I wish my website loaded up as quickly as yours lol

  32. Pingback: 2awkwardly
  33. Thanks , I’ve just been looking for information approximately this subject for a long time and yours is the greatest I have came upon till now. However, what about the conclusion? Are you sure about the supply?

  34. I am not sure where you’re getting your information, but good topic.I needs to spend some time learning more or understanding more.Thanks for wonderful info I was looking for this information for my mission.

  35. I’m not sure where you are getting your information, but good topic. I needs to spend some time learning more or understanding more. Thanks for excellent info I was looking for this information for my mission.

  36. Hi there, just was aware of your blog thru Google, and located that it is really informative. I am gonna be careful for brussels. I’ll be grateful if you continue this in future. Many other folks will be benefited out of your writing. Cheers!

  37. I will immediately snatch your rss as I can not find your e-mail subscription link or newsletter service.Do you’ve any? Please let me recognise so that I may subscribe.Thanks.

  38. Do you have a spam issue on this blog; I also am a blogger, andI was curious about your situation; we have developed some nice practices and we are looking to swapsolutions with others, please shoot me an email if interested.

  39. Hi there superb blog! Does running a blog similar to this take a
    lot of work? I’ve no knowledge of computer programming however I had been hoping to start my own blog in the near future.

    Anyway, if you have any recommendations or tips for new blog owners
    please share. I understand this is off subject however I just needed
    to ask. Kudos!

  40. You could certainly see your enthusiasm within the work you write. The sector hopes for more passionate writers such as you who are not afraid to say how they believe. Always go after your heart.

  41. Thanks , Ive just been searching for info about this subject for ages and yours is the best Ive discovered till now. But, what about the bottom line? Are you sure about the source?

  42. My brother recommended I would possibly like this web site. He was totally right. This publish actually made my day. You cann’t imagine simply how so much time I had spent for this information! Thank you!

  43. What’s Taking place i am new to this, I stumbled upon this I have found It positivelyhelpful and it has helped me out loads. I am hoping togive a contribution & aid different customers like its helped me.Good job.

  44. Hi! Would you mind if I share your blog with my facebook group?
    There’s a lot of folks that I think would really enjoy your content.
    Please let me know. Thank you

  45. Howdy just wanted to give you a quick heads up. The text in your article
    seem to be running off the screen in Opera.
    I’m not sure if this is a format issue or something to do with web browser compatibility but I thought I’d post to let you know.
    The layout look great though! Hope you get the problem resolved soon. Kudos

  46. Its such as you learn my mind! You seem to understand a lot approximately this, like you wrote the e-book in it or something.
    I believe that you simply can do with a few % to force the
    message house a little bit, however other than that, this is fantastic blog.
    A fantastic read. I’ll certainly be back.

  47. Hi! I just want to give you a big thumbs up for your great information you have got here on this post. I’ll be returning to your blog for more soon.

  48. This design is incredible! You certainly know how to keep
    a reader entertained. Between your wit and
    your videos, I was almost moved to start my own blog (well, almost…HaHa!) Fantastic job.
    I really loved what you had to say, and more than that, how you presented it.

    Too cool!

  49. Thanks so much for giving everyone such a brilliant possiblity to read from this site. It can be very sweet and stuffed with a lot of fun for me personally and my office co-workers to visit your web site minimum three times a week to learn the fresh guides you have. Of course, we’re usually satisfied with the astonishing knowledge you serve. Certain 3 areas in this article are undeniably the most impressive I have had.

  50. ถ้าเกิดจะถามถึงเกมออนไลน์ที่เล่นง่ายและก็ทำเงินได้ง่ายที่สุดระอุงหนีไม่พ้นบาคาร่าออนไลน์ UFABET ก็เลยเอาอกเอาใจสมาชิกโดยการรวมรวมเกมบาคาร่าออนไลน์ไว้มากไม่น้อยเลยทีเดียวเพื่อให้สามาชิกได้เลือกเล่นอย่างเต็มที่ยิ่งกว่านั้นยังมีเกมอื่นๆอีกมากมาย

  51. I must thank you for the efforts you have put in penning this blog. I’m hoping to check out the same high-grade blog posts from you later on as well. In fact, your creative writing abilities has encouraged me to get my own, personal blog now 😉

  52. Howdy! This post could not be written much better! Looking at this article reminds me of my previous roommate! He always kept talking about this. I’ll forward this information to him. Pretty sure he will have a great read. I appreciate you for sharing!

  53. A motivating discussion is worth comment. I believe that you ought to write more on this topic, it may not be a taboo matter but typically people don’t discuss such issues. To the next! Kind regards.

  54. I want to to thank you for this wonderful read!! I certainly loved every little bit of it. I have got you book-marked to check out new stuff you post…

  55. I believe that is among the such a lot important information for me.
    And i am happy studying your article. But want to statement on some normal things,
    The site style is perfect, the articles is actually great : D.
    Excellent activity, cheers

  56. Oh my goodness! Incredible article dude! Thanks, However I am experiencing problems with your RSS. I don’t understand why I cannot join it. Is there anyone else having identical RSS problems? Anybody who knows the solution can you kindly respond? Thanks!

  57. I will right away grasp your rss feed as I can not to find youremail subscription hyperlink or e-newsletter service.Do you’ve any? Kindly permit me realize so that I may subscribe.Thanks.

  58. Oh my goodness! Amazing article dude! Thank you, However I am having problems with your RSS. I don’t understand why I can’t join it. Is there anybody getting similar RSS issues? Anybody who knows the solution can you kindly respond? Thanks!!

  59. Hi, I do believe this is a great website. I stumbledupon it 😉 I am going to come back once again since I book marked it. Money and freedom is the best way to change, may you be rich and continue to help others.

  60. When I originally commented I seem to have clicked on the -Notify me when new comments are added- checkbox and now every time a comment is added I recieve four emails with the exact same comment. Is there a way you can remove me from that service? Appreciate it.

  61. After checking out a few of the articles on your website, I truly appreciate your way of writing a blog. I book marked it to my bookmark webpage list and will be checking back in the near future. Please check out my web site as well and tell me your opinion.

  62. Aw, this was an incredibly nice post. Taking the time and actual effort to generate a superb article?but what can I say? I procrastinate a whole lot and don’t seem to get anything done.Look into my blog post Helio CBD Oil

  63. Oh my goodness! Incredible article dude! Thank you, However I am having difficulties with your RSS. I don’t understand the reason why I can’t subscribe to it. Is there anyone else getting similar RSS problems? Anyone who knows the solution will you kindly respond? Thanks!!

  64. I was pretty pleased to find this web site. I wanted to thank you for your time due to this fantastic read!! I definitely liked every bit of it and i also have you book-marked to see new information on your web site.

  65. Hello! I simply wish to give you a big thumbs up for the excellent info you have got right here on this post. I’ll be coming back to your web site for more soon.

  66. Xoilac Tv Trực Tiếp đá Bóng keo nhà cáiĐội tuyển chọn futsal nước ta đã được một trận đấu đồng ý được trước đối thủ đầy sức mạnh Lebanon. Kết trái Bà Rịa-Vũng Tàu vs Bình Phước hôm nay 18h00 ngày 5/5, Hạng nhất nước Việt Nam.

  67. An outstanding share! I’ve just forwarded this onto a co-worker who was conducting a little research on this. And he in fact ordered me breakfast because I stumbled upon it for him… lol. So allow me to reword this…. Thank YOU for the meal!! But yeah, thanx for spending the time to talk about this matter here on your internet site.

  68. Good day! I could have sworn I’ve been to this web site before but after browsing through a few of the posts I realized it’s new to me. Regardless, I’m certainly pleased I discovered it and I’ll be bookmarking it and checking back regularly.

  69. This is the perfect web site for everyone who would like to find out about this topic. You know a whole lot its almost hard to argue with you (not that I really will need to…HaHa). You definitely put a new spin on a subject that has been discussed for many years. Wonderful stuff, just great.

  70. I seriously love your blog.. Excellent colors & theme. Did you create this amazing site yourself? Please reply back as I’m hoping to create my very own website and would like to know where you got this from or exactly what the theme is called. Many thanks!

  71. I seriously love your blog.. Great colors & theme. Did you create this website yourself? Please reply back as I’m hoping to create my own personal site and would love to find out where you got this from or just what the theme is called. Thanks!

  72. An impressive share! I’ve just forwarded this onto a colleague who had been doing a little homework on this. And he actually ordered me lunch simply because I discovered it for him… lol. So allow me to reword this…. Thanks for the meal!! But yeah, thanx for spending some time to talk about this subject here on your internet site.

  73. Hi! I know this is somewhat off topic but I was
    wondering which blog platform are you using for this website?
    I’m getting tired of WordPress because I’ve had issues with hackers and I’m looking at alternatives for another platform.
    I would be great if you could point me in the direction of
    a good platform.

  74. you are in point of fact a good webmaster. The website loading pace is incredible. It sort of feels that you’re doing any unique trick. Moreover, The contents are masterwork. you’ve performed a wonderful process in this subject!

  75. Hello, Neat post. There is a problem along with your
    web site in web explorer, might test this? IE still
    is the market leader and a large component to other people will leave out
    your excellent writing due to this problem.

  76. Right here is the right website for everyone who would like to find out about this topic. You realize a whole lot its almost tough to argue with you (not that I really will need to…HaHa). You definitely put a new spin on a subject that has been written about for a long time. Wonderful stuff, just great.

  77. Hello There. I discovered your blog the usage of msn. This is a veryneatly written article. I’ll make sure to bookmark it and come back to learn more of your useful information. Thank youfor the post. I’ll certainly comeback.

  78. Heya i’m for the first time here. I came across this board and I
    to find It really helpful & it helped me out much.
    I’m hoping to provide one thing back and help others such as you aided me.

    Also visit my web blog; 2022

  79. I’m very happy to uncover this page. I want to to thank you for ones time just for this wonderful read!! I definitely liked every little bit of it and I have you book-marked to see new stuff in your web site.

  80. I truly love your website.. Excellent colors & theme. Did you make this web site yourself? Please reply back as I’m attempting to create my own personal blog and want to know where you got this from or just what the theme is called. Thank you.

  81. Great post. I was checking constantly this blog and I am inspired!Extremely helpful information specially the last phase 🙂 I takecare of such information a lot. I was seeking this particular info fora long time. Thanks and best of luck.

  82. My brother recommended I might like this blog. He was totally right.
    This post actually made my day. You cann’t imagine just how much time I had spent for this
    info! Thanks!