Govt limits ITC to 10% in case of GST details not reflected in filings

New Delhi, Dec 28 (KNN) In an effort to curb tax evasion, the government has lowered the Input Tax Credit (ITC) to 10% from 20% of eligible credit, if invoices or debit notes are not reflected in filings.
 
On December 18, the GST Council had approved a proposal in this regard at its meeting to check tax evasion and menace of fake invoicing.
 
Officers at the level of commissioners have been permitted to bar debit of input tax credit for one year in case of credit being availed fraudulently.
 
The new rules will come into effect from January 1, 2020.
 
''The commissioner having reasons to believe that credit of input tax has been fraudulently availed may not allow debit for discharge of any liability or for claim of any refund of any unutilised amount,” the notification said.
 
The Centre further notified that e-way bill of taxpayers who have not filed their Form GSTR-1 for two months or two quarters shall be blocked.

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