Stringent Conditions & Restrictions to avail GST Credit w e f October 1, 2022 CA Adv Bimal Jain

Finance Act 2022 had introduced various changes in the Central Goods and Services Tax Act, 2017. Notably, some of the important changes are now made effective from 1st October 2022. Here, we will discuss changes with regard to introduction of stringent conditions and restrictions for availment of input tax credit. The provisions effective from 1st October 2022 states that input tax credit auto-populated in GSTR-2B should not be restricted as per substituted section 38 of the CGST Act. As per section 38(2)(b) of the CGST Act, input tax credit available to the buyer/ recipient can be wholly or partly restricted. Importantly, such input tax credit will be restricted for any of the following situation – • If the supplier has obtained new GST registration then for the specified period input tax credit available to the buyer/ recipient can be restricted, • If the supplier is defaulting in payment of tax and such default continuous for the specified period. Then, the input tax credit can be restricted, • If the supplier reflects less outward supplies and output tax in GSTR-3B as compared to that of GSTR-1 and such difference is beyond the specified limit as prescribed. Then, the input tax credit can be wholly or partly restricted, • If supplier avails more input tax credit in GSTR-3B as compared to that of input tax credit reflected in GSTR-2B beyond the specified limit as may be prescribed. Then, input tax credit can be restricted, • If supplier defaults in payment of tax as per section 49(12) of the CGST Act, • Any other specified restriction which may be prescribed. It is important to note here that all the above restrictions imposed on availment of input tax credit to the buyer/ recipient are based on the defaults committed on the part of the supplier. #FinanceAct'#ITC #inputtaxcredit 👉🏻 Download Our Free Android App: https://play.google.com/store/apps/de... Follow us - Website: https://taxguru.in/ Facebook:   / taxguruin   Twitter:   / taxguru_in   LinkedIn:   / profile   Instagram:   / taxguruin