The CBIC has issued Notification No. 39/2021–Central Tax on 21-12-2021 through which Section 16 of CGST Act, 2017 has been amended. A new clause has been inserted in section 16 of CGST Act, 2017 after sub-section (2), clause (a), which reads as:
“(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;”.
Explanation – As per Section 16(2) (aa) ITC on invoice or debit note can be availed only when details of such invoice/ debit note have been furnished by the supplier in his outward supplies (GSTR-1) and such details have been communicated to the recipient of such invoice or debit note.
It was been proposed to insert the new clause ‘(aa)’ after clause (a), in section 16(2) of the CGST Act, this provides an additional condition to claim ITC based on GSTR-2A and newly introduced GSTR-2B. All the below mentioned conditions shall be satisfied to avail Input Tax Credit:
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