In order to provide relief to taxpayers in the wake of COVID-19 Pandemic, CBIC has temporarily suspended ITC restrictions in GST by issuing Notification No. 30/2020-CT, Dated 03.04.2020.
The extract of this notification is as under :
3. In the said rules, in sub-rule (4) of rule 36, the following proviso shall be inserted, namely:-
“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.”.
It means that 110% ITC restriction as prescribed in Rule 36(4) will not be applicable for GSTR-3B for the months from Feb, 2020 to Aug, 2020 and the taxpayers can avail full ITC for these months. The taxpayers can provide cumulative adjustment as per this rule, in GSTR-3B of Sep, 2020 considering the ITC as available in GSTR-2A for the months from Feb, 2020 to Sep, 2020.
This can be taken as one of the major reliefs, which CBIC has provided through various notifications on 03.04.2020.