Redraft Rule 4 of GST ITC Rules- Distribution of credit by ISD : ICAI – GST Rules Issue 19

By CA Satbir Singh | May 10, 2017

(Last Updated On: May 10, 2017)

Distribution of credit by ISD

Rule 4 of draft GST ITC Rules provides for a mechanism for distribution of credit by ISD

Issue

The said Rule provides for distribution of credit in the ‘same month’ which also includes all ‘ineligible credits’.

Suggestion

It is suggested that Rule 4 be suitably amended to:

a) permit distribution not later than due date for filing return for September next year

b) delete the requirement to distribute ineligible credit including reference to credit under Section 17 (5)