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What is the impact of Section 16(2) (aa) of CGST Act -20170-With amended Rule 59 of CGST Rule

What is New Provision as per section 16(2) (aa)? Recently inserted new Section 16(2) (aa) of CGST Act Finance Bill, 2021. In this Article we are trying to discuss & analysis of Section 16(2) (aa) with Section 37 of CGST Act-2017. Provision as per Law...

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What is New Provision as per section 16(2) (aa)?

Recently inserted new Section 16(2) (aa) of CGST Act Finance Bill, 2021. In this Article we are trying to discuss & analysis of Section 16(2) (aa) with Section 37 of CGST Act-2017.

Provision as per Law 16(2) (aa)

The details of the Tax Invoice/Bill 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 Tax Invoice/Bill or debit note in the manner specified under section 37 of CGST Act 2017;

 What is the impact of Section 16(2) (aa) of CGST Act, 2017?

According to this section Registered Person can take Input Tax Credit only when detail furnished by the supplier in the statement of outward supplies and details have been communicated to Registered Person in the manner specified Under Section 37 of CGST Act-2017

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What was Section 37 of CGST Act 2017?

Every registered person, other than: –

  • an ISD- Input Service Distributor,
  • a non-resident taxable person and
  • a person paying tax under the provisions of section 10 or sec. 51 or sect. 52 of the CGST Act 2017,

shall furnish, electronically on the common portable of GST, in such form and manner as may be prescribed, the details of outward supplies of goods or services or both effected during a tax period on or before the 10th day of the succeeding month the said tax period and such details shall be communicated to the recipient of the said supplies within such time and in such manner as may be prescribed:(Rule 59 of CGST Rule).

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As per amended Rule 59 of CGST Rule by notification no. 82/2020

The details of outward supplies furnished by the supplier shall be made available electronically on the Common portable to the concerned registered persons (recipients) in Part A of GSTR-2A, in GSTR-4A and in GSTR-6A through the common portal after the due date of filing of Form GSTR-1.and As per Rule 60 of CGST Rule Form and manner of ascertaining details of inward supplies. –

(1) The details of outward supplies furnished by the supplier in GSTR-1 or using the IFF- Invoice Furnishing Facility shall be made available electronically to the concerned registered persons (recipients) in Part A of FORM GSTR-2A, in FORM GSTR-4A and in FORM GSTR-6A through the common portal, as the the case may be.

Input Tax Credit can be take on basis of GSTR 2(A) because Sec 16(2)(aa) of CGST Act said that ITC will be available only when detail furnish by a supplier in Outward supplies and details have been communicated to the recipient of such Tax Invoice or debit note in the manner specified under section 37 & As per Sec 37 Rule 59 & Rule, 60 Outward supplies detail will be made available in Form GSTR 2(A)

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