Input Tax Credit or ITC under GST is the credit back of the tax a registered GST taxpayer pays on inputs i.e. purchases. This tax he is liable to get back from the government. Read more
The central government vide Notification no 49/2019 central tax dated 9/10/2019 has inserted sub-rule (4) to rule 36 which restricts the ITC claim for invoices not uploaded by the supplier to 20% of the eligible claim. The cap of 20% on provisional ITC claim makes it necessary for taxpayers to have purchase invoice reconciliation as integral part of GST returns preparation.