Dec 27 2019
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ITC claimed in GSTR-3B can’t exceed 10% of available ITC in GSTR-2A instead of 20% w.e.f. 01/01/2020
Notification No. 75/2019 – Central Tax Dated 26th December, 2019 as below:
itc-claimed-in-gstr-3b-cant-exceed-10-of-available-itc-in-gstr-2a-instead-of-20
CBIC has reduced the maximum limit of ITC which can be claimed in 3B and now the registered person cannot claim ITC more than 10% of ITC available in its GSTR-2A. Earlier the limit prescribed was 20%. Moreover, CBIC has prescribed conditions of use of amount available in electronic credit ledger. One of the conditions is that ITC would not be available if the registered person availing the credit of input tax or a registered person who has issued invoice has been found non-existent or not to be conducting any business from any place for which registration has been obtained.