Skip to content

CMA Intermediate · Direct and Indirect Taxation · Input Tax Credit

Mehta Traders received an invoice from a supplier in Surat that omits some particulars prescribed in Chapter VI but shows the tax charged, description of goods, total value of supply, GSTIN of supplier and recipient, and place of supply for an inter-State supply. What is the position on input tax credit under rule 36(2)?

Credit may be availed. The proviso to rule 36(2) allows credit on a document missing some prescribed particulars if it still shows the tax charged, description, total value, GSTINs of supplier and recipient, and place of supply for inter-State supply. All are present, so no denial or partial restriction applies.

  1. ACredit is denied because every prescribed particular must appear
  2. BCredit may be availed because the proviso allows it when these specified details are presentCorrect
  3. CCredit is allowed only up to 50 per cent of the tax shown
  4. DCredit is allowed only after the supplier issues a debit note

Explanation

The proviso to rule 36(2) permits credit where the document lacks some particulars but contains the tax amount, description of goods or services, total value, GSTINs of supplier and recipient, and place of supply for inter-State supply. All of these are present here. No 50 per cent restriction or debit note requirement exists in the text.

Did you get it right without looking?

One question tells you little. A timed set on Input Tax Credit shows your real accuracy, how long you take and where you lose marks.

Practise Input Tax CreditFree diagnostic mock

More Input Tax Credit questions