Trading community on Sunday urged Union Finance Minister Nirmala Sitharaman and Goods and Goods and Services Tax (GST) Council to withdraw certain provisions of the new GST notification issued a few days back regarding ITC restriction. The government had notified certain changes to the GST Rules on December 22 and some of the rules are set to be applicable from January 1 next year.
In a memorandum, the Federation of All India Vyapar Mandal a national body of small traders advocating for a single-point GST collection, urged for certain changes in the recently issued GST notification.
“Scrap Rules 86B and 36(4), to be effective from 1st January 2021. These provisions are against the fundamental spirit of GST as it obstructs seamless input tax credit,” association general secretary V K Bansal said.
Also Read : All about new Rule 86B regarding restricting the use of the amount available in electronic credit ledger
The Central Board of Indirect Taxes and Customs (CBIC) has introduced Rule 86B in GST Rules, to be applicable from January 1, 2021, which restricts use of input tax credit for discharging GST liability to 99 percent.
This means businesses with monthly turnover of over Rs 50 lakh will have to mandatorily pay at least 1 percent of their GST liability in cash, the letter to the minister said.
Rule 36(4) restricts claim of Input Tax Credit (ITC) in respect of invoices/debit notes not furnished by the suppliers which has now been reduced from 10 percent to 5 percent of the credit available in GSTR 2B.
Source: economictimes.com
Also Read: All about nine amendments in CGST Act applicable from 1 Jan, 2021
Read quality articles on GST authored by national level experts on the one and only exclusive GST portal CLICK HERE
***
Subscribe our portal and get FREE GST e-books , articles and updates on your e-mail.
Resolve your GST queries from national level experts on GST free of cost.
TW Editorial Team comprises of team of experienced Chartered Accountants and Advocates devoted to spread the knowledge of GST amongst the various stakeholders.
