Rule 36 of CGST Rules 2017: Documentary Requirements for claiming ITC

Provisions under Rule 36 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Documentary Requirements and Conditions for claiming Input Tax Credit”, are as under:

CGST Rule 36: Documentary Requirements and Conditions for claiming Input Tax Credit (Chapter-V: Input Tax Credit)

(1) The input tax credit shall be availed by a registered person, including the Input Service Distributor, on the basis of any of the following documents, namely,-

(a) an invoice issued by the supplier of goods or services or both in accordance with the provisions of section 31;

(b) an invoice issued in accordance with the provisions of clause (f) of sub-section (3) of section 31, subject to the payment of tax;

(c) a debit note issued by a supplier in accordance with the provisions of section 34;

(d) a bill of entry or any similar document prescribed under the Customs Act, 1962 or rules made there-under for the assessment of integrated tax on imports;

(e) an Input Service Distributor invoice or Input Service Distributor credit note or any document issued by an Input Service Distributor in accordance with the provisions of sub-rule (1) of rule 54.

(2) Input tax credit shall be availed by a registered person only if all the applicable particulars as specified in the provisions of Chapter VI are contained in the said document, and the relevant information, as contained in the said document, is furnished in FORM GSTR 2 by such person. [Note 11(a)]

Provided that if the said document does not contain all the specified particulars but contains the details of the amount of tax charged, description of goods or services, total value of supply of goods or services or both, GSTIN of the supplier and recipient and place of supply in case of inter-State supply, input tax credit may be availed by such registered person. [Note 1]

(3) No input tax credit shall be availed by a registered person in respect of any tax that has been paid in pursuance of any order where any demand has been confirmed on account of any fraud, willful misstatement or suppression of facts.

(4) Input tax credit to be availed by a registered person in respect of invoices or debit notes, the details of which have not been uploaded furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR 1 or using the invoice furnishing facility, shall not exceed 20 per cent 10 per cent 5 per cent of the eligible credit available in respect of invoices or debit notes the details of which have been uploaded furnished by the suppliers under sub-section (1) of section 37 in FORM GSTR 1 or using the invoice furnishing facility. [Note 2, 3, 5, 6 & 7]

Provided that the said condition shall apply cumulatively for the period February, March, April, May, June, July and August, 2020 and the return in FORM GSTR 3B for the tax period September, 2020 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above. [Note 4]

Provided further that the such condition shall apply cumulatively for the period April and May, 2021 and the return in FORM GSTR 3B for the tax period May, 2021 shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above [Note 8]

Provided further that such condition shall apply cumulatively for the period April, May and June, 2021 and the return in FORM GSTR 3B for the tax period June, 2021 or quarter ending June, 2021, as the case may be, shall be furnished with the cumulative adjustment of input tax credit for the said months in accordance with the condition above. [Note 10]

(4) No input tax credit shall be availed by a registered person in respect of invoices or debit notes the details of which are required to be furnished under subsection (1) of section 37 unless,-

(a) the details of such invoices or debit notes have been furnished by the supplier in the statement of outward supplies in FORM GSTR-1 or using the invoice furnishing facility; and

(b) the details of input tax credit in respect of such invoices or debit notes have been communicated to the registered person in FORM GSTR-2B under sub-rule (7) of rule 60. [Note 11(b)]

Amendments History:

1. Proviso to sub-rule (2) inserted vide Central Tax Notification 39/2018 dt. 04/09/2018.

2. Sub-rule (4) inserted vide Central Tax Notification 49/2019 dt. 09/10/2019,

3. In sub rule (4), the text ’20 per cent’ substituted with ’10 per cent’ w.e.f. 01/01/2020, vide Central Tax Notification 75/2019 dt. 26/12/2019.

4. First proviso to sub-rule (4) inserted vide Central Tax Notification 30/2020 dt. 03/04/2020.

5. In sub rule (4), the text ‘uploaded’ substituted with ‘furnished’ at both the places, w.e.f. 01/01/2021 vide Central Tax Notification 94/2020 dt. 22/12/2020.

6. In sub rule (4), the text ‘in FORM GSTR 1 or using the invoice furnishing facility’ inserted at both the places w.e.f. 01/01/2021 vide Central Tax Notification 94/2020 dt. 22/12/2020.

7. In sub rule (4), the text ’10 per cent’ substituted with ‘5 per cent’ w.e.f. 01/01/2021 vide Central Tax Notification 94/2020 dt. 22/12/2020.

8. Second proviso to sub-rule (4) inserted vide Central Tax Notification 13/2021 dt. 01/05/2021.

9. Second proviso to sub-rule (4) substituted vide Central Tax Notification 27/2021 dt. 01/06/2021.

10. Sub-rule (4) substituted w.e.f. 01/01/2022, vide Central Tax Notification 40/2021 dt. 29/12/2021, to enable registered person for availing ITC of those invoices/ debit notes which have been furnished by supplier in GSTR-1 or using the IFF and such details have been communicated to him in FORM GSTR-2B u/r 60(7).

11. Amendments vide Central Tax Notification 19/2022 dated 28/09/2022, effective October 1, 2022:

(a) in sub-rule (2), the text “and the relevant information, as contained in the said document, is furnished in FORM GSTR-2 by such person” omitted;

(b) in sub-rule (4), in clause (b), the text “input tax credit in respect of” inserted.

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Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dated 19/06/2017 (Rule 1 to 26), 10/2017 dated 28/06/2017 (Rules 27 to 138) and 15/2017 dated 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.