Eye Share: Unjustified Restrictions on Input Tax Credit - 'A Critical Analysis'

Recent Central Government Notification No. 49/2019-Central Tax dated October 9, 2019 seeks to restrict the availment of ITC to 20% of eligible credit in respect of invoices or debit notes uploaded, where the supplier fails to upload details in GSTR-1. The proposed amendment once effective is expected to have a significant impact on cash flow of firms as the recipient dealer would have to deploy more working capital.Mr. Naveen Kumar Dhandaria (Chartered Accounta...