Alert: Government Finally Notified Most Dangerous Section Of The GST Act

Vide Notification No. 39/2021- Central Tax, Dated 21st December 2021, Government has notified Section 16(2)(aa) of the CGST Act 2017 which will disallow the Input Tax Credit which is not available in GSTR-2B of the buyer. The said Section will come into force w.e.f. 1st January 2022.

Section 16(2)(aa) can be read as under:

“(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;”.

It is interesting to note that Section 16(2)(aa) was introduced in the Finance Act 2021.

To Download The Copy Of Finance Act 2021, Please Click Here

To Download the Copy Of Notification, Please Click Here

    7 thoughts on “Alert: Government Finally Notified Most Dangerous Section Of The GST Act”

      1. In very simple words, If the person from whom you bought goods/services does not file his GSTR-1 timely, or does not mention your invoice in GSTR-1, you will not get input tax credit on that purchase in that month.

        -capitalbookkeepers
        Capitalbookkeepers.in

      1. In very simple words, If the person from whom you bought goods/services does not file his GSTR-1 timely, or does not mention your invoice in GSTR-1, you will not get input tax credit on that purchase in that month.

        -capitalbookkeepers
        Capitalbookkeepers.in

    1. May be it means govt will fully disallowed ITC of those inward supply whose invoice details is not uploaded by supplier(person from whom you purchase)..

      If your supplier does not upload invoice details in gstr1 then it will not be reflected in gstr2A/gstr2B so that you can’t take itc..
      Previously it was given upto 5% of eligible credit or actual w.e. is lower.

      Now no ITC if invoices are not uploaded in gstr 1 by supplier.

      Simply speaking if the details of any invoice is not reflected in your gstr2B then you can’t take Itc…

      I think this is the notification..
      I am not fully sure…

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