The Government has recently on December 18 notified changes in input tax credit lowering it to 10% from 20% of eligible credit if invoices or debit notes are not reflected in filings. The council has approved a proposal to check evasion of taxes and menace of fake invoicing. Moreover, it has also allowed commissioners to bar debit of input tax credit to adjust liabilities if availed fraudulently. This new rule shall come into force on 1st January, 2020. “The commissioner having reasons to believe that credit of input tax has been fraudulently availed may not allow debit for discharge of any liability or for claim of any refund of any unutilised amount,” the notification said. Further, it was also decided that e-way bill of taxpayers shall be blocked who have not filed their GSTR-1 for two months or two quarters. The government has allowed waiver of late fee for entities furnishing outward supply details in Form GSTR-1 between December 19, 2019 and January 10, 2020, for the period between July 2017 and November 2019.
