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J48 GST LAW TIMES [ Vol. 35
consecutive months/quarters (Notification No. 74/2018, dated
13-12-2018 as amended by Notification No. 75/2019-C.T., dated
26-12-2019). The very objective of the Government to encourage
taxpayers to file their returns regularly for outward supplies by
complying the statutory provisions in terms of Section 37 of the
CGST Act, 2017. In this connection the Government has brought
amendment and interlink the provisions of E-way Bill generation to
filing returns by the taxpayers. Thereby, clandestine removals of
goods/fraudulent outward supplies can be controlled and discour-
age the non-filers of returns to streamline the requirement of system
of auto-populated GSTR-2A and enabling the genuine taxpayers to
avail ITC to the full extent of tax paid by them.
(4) Restriction on claim of ITC : A new sub-rule (4) of Rule 36 of the
CGST Rules has been inserted by which a registered person can
claim ITC in respect of invoices or debit notes, the details of which
have not been uploaded by the suppliers in GSTR-1 (i.e. not getting
reflected in FORM GSTR-2A) only to the extent of 10% of the eligi-
ble credit available in respect of invoices or debit notes, the details
of which have been uploaded by the suppliers. This is effective from
1st January, 2020 (Notification No. 49/2019-C.T., dated 9-10-2019 as
amended by Notification No. 75/2019-C.T., dated 26-12-2019).
(5) Blocking of ITC by the Department : The new Rule 86A of the
CGST Rules, inserted vide Notification No. 75/2019-C.T., dated
26-12-2019, grant power to a Commissioner to decide or vary the
conditions for use of ITC available in electronic credit ledger. As per
the amendment, a Commissioner may not allow debiting of amount
in the electronic credit ledger for discharge of tax liabilities or claim
of a refund of any unutilized amount in the tax register if, he has
reasons to believe, that such tax credit is :
 Availed fraudulently based on invoices from a non-existing
person or from a person not conducting any business from
any place for which registration has been obtained.
 Availed without receipt of goods or services.
 Availed on the strength of tax invoices etc., the tax charged in
respect of which has not been paid to the Government.
(6) New GST Returns System : The GST Council in its 31st Meeting
recommended introduction and implementation of a new GST Re-
turn system will be introduced for taxpayers. New simplified auto-
mated GST returns would be implemented from 1st April, 2020 for
all taxpayers. In the new GST Return System, there will be three
main components to the new return one main return (FORM GST
RET-1) and two annexures (FORM GST ANX-1 and FORM GST
ANX-2).
The periodicity of filing return in FORM GST RET-1 will be deemed
to be monthly for all taxpayers unless quarterly filing of the return
is explicitly opted for by small taxpayers. The aggregate annual

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