How to prepare for new provisional credit rule; wrongful claim of ITC may attract penal provisions

On 9 October 2019, the Central Board of Indirect Taxes and Customs (CBIC) announced a rule regarding provisional ITC claims. If a supplier fails to upload invoices, the provisional ITC will be restricted to 20 percent for a buyer. Provisional input tax credit (ITC) refers to ITC which can be claimed even though ITC is not available in GSTR-2A. The provisional ITC will be calculated based on ITC av…