COMPLIANCE CALENDAR FOR THE MONTH OF OCTOBER 2022
October 1, 2022GST Returns can be filed for the period prior to cancellation of GST registration: Madras High Court
October 6, 2022
Conditions to avail GST Credit w.e.f. October 1, 2022
- Earlier there were 4 conditions under Section 16(2) of the CGST Act to avail ITC i.e. from 01.07.2017
- Buyer should have a tax invoice or eligible document.
- Buyer must have received goods or service
- Buyer must have paid GST either through e-cash ledger or e-credit ledger
- Buyer must be filing GST return regularly.
- Further w.e.f. January 01, 2022: GST credit availed must be matched with GSTR-3B.
- W.e.f. 1st October 2022: Above mentioned conditions must be satisfied and now as per section 38(2)(b), the Buyer’s credit will be restricted wholly or partly if :
- Supplier is newly registered (time limit will be prescribed) under GST;
- The supplier has defaulted in payment of tax and such default continues for the time limit as will be prescribed;
- Supplier’s output tax payable, as per Form GSTR-1filed by him, exceeds output tax paid via Form GSTR-3B by a specific prescribed limit;
- Supplier avails ITC in Form GSTR-3B more than ITC reflected in its Form GSTR-2B by such prescribed limit;
- The supplier has defaulted in discharging his output tax liability as per provisions of section 49(12) of the Central Goods and Services Tax Act, 2017; and
- Supplier being prescribed class of person.
Summing up the above-explained provisions of new section 38, we can conclude that now, the eligibility and ineligibility of the ITC depend mainly on compliance and commitments handled by the supplier under GST.
