Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 75/2019 dated 26th December, 2019 to further amend the Central Goods and Services Tax (CGST) Rules, 2017.

Key Points of the Amendment are:

1. Sub-rule 4 of Rule 36 relating to documentary requirements and conditions for claiming input tax credit has been substituted so as to restrict the input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which are not reflected in his FORM GSTR-2A to 10 per cent instead of 20 per cent of the eligible credit available in respect of invoices or debit notes reflected in his FORM GSTR-2A.

2. A new rule 86A relating to conditions of use of amount available in electronic credit ledger has been inserted after Rule 86 (Electronic Credit Ledger) by way of which –

1. The Commissioner or an officer authorised by him in this behalf, not below the rank of an Assistant Commissioner, having reasons to believe that credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible basis, then he may for reasons to be recorded in writing, not allow debit of an amount equivalent to such credit in electronic credit ledger for discharge of any liability or for claim of any refund of any unutilized amount if –

1.   the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed which are –
2. issued by a registered person who has been found non-existent or not to be conducting any business from any place for which registration has been obtained or
3. without receipt of goods or services or both
4. the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed in respect of any supply, the tax charged in respect of which has not been paid to the Government.
5. the registered person availing the credit of input tax has been found non-existent or not to be conducting any business from any place for which registration has been obtained;
6. the registered person availing any credit of input tax is not in possession of a tax invoice or debit note or any other document prescribed.

1. The Commissioner or the officer authorized by him may upon being satisfied that conditions for disallowing debit of electronic credit ledger as above, no longer exist, allow such debit from electronic credit ledger.
2. The restriction shall cease to have effect after the expiry of a period of one year from the date of imposing such restriction

In Rule 138E, a new clause (c) shall be inserted from 11th day of January, 2020 so as to restrict on furnishing of information of Part A of E-way bill if a registered person has not furnished the statement of outward supplies in Form GSTR-1 for any two months or quarters, as the case may be.

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