The Input tax credit (ITC) is the tax paid on the purchase of goods or services which can be set off against the tax liability on the sale of goods or services. Generally, under the system of GSTR-1 and GSTR-3B, the tax credit is claimed by the recipient based on the sales invoices uploaded by the seller/supplier. However, the ITC claim will not be allowed in full for any recipient if their suppliers have not furnished the details of their outward supplies. In this case, the CBIC released an important notification on 9 October 2019, inserting under rule 36(4) of the CGST Rules, 2017.
Source Taxscan
