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All QuestionsCategory: GST ConsultancyGST cancel after input credit claimed
Profile photo of Kollipara sundaraiahKollipara sundaraiah asked 3 years ago

GST cancel after input credit claimed

A GST registered regular scheme dealer cancels of GST number Dt:31-08-2020.but supplier(seller) purchases invoice cancel GST number issued on Dt:05-09-2020.
Dealer cancel GST number invoice input credit claimed allowed in the GST act.

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1 Answers
Profile photo of Shubham BansalShubham Bansal answered 3 years ago

As per section 16(2) of CGST Act, 2017 a registered person may claim the Input Tax Credit if he satisfies that 4 conditions mentioned in that Section but a restriction has been created by Subrule 4 of Rule 36 of CGST rules, 2017 which restricts the ITC to the extent of not more than 10% of the credit as is appearing in Form GSTR2A, although that rule can be challenged since it is linked with new return forms which is now going to be disposed but since that rule is in place as of now so it creates a restriction on ITC by that way.
If you satisfy the conditions of Section 16(2) and your credit is huge better to take credit, since many experts are of the same view that it is the responsibility of the seller to pay the tax after issuing the Tax invoice to the buyer and buyer has already discharged the taxes to his supplier. 
P.S. This is just an advise and by taking such credit you may have to litigate the matter in future and courts will decide the further course of action.