Draft Mail to write in internal department for changes in GST Credit.
There is huge change in claiming GST Credit from 01/01/22 and so necessary to inform to non finance department as they will be dealing with vendors.
Below is draft mail you can send to non finance department.
Sub : Huge Change in Claiming of GST credit
Dear all,
There is huge
change in claiming of GST credit (applicable from
01/01/21) wide notification 39/2021-CT, Dated -21/12/21 as under :
As per the new insertion of Section 16(2)(aa), a Recipient cannot avail
Input Tax Credit (ITC) for the Invoice issues by the Supplier, if the Supplier
has not filed that Invoice in his GSTR1 Returns i.e.
Input tax Credit(GST Paid to vendors) in respect of invoices and debit notes
shall be available only to extent they are furnished in GSTR1 by the vendors
and the appearing in GSTR2A/2B of the recipient(your company name).
If Vendor have
not filed GSTR1 showing invoice issued to us in within due date (11th
of preceding month), than we will not able to take credit of tax till they show
invoices issued to us in that month and filed GSTR1 which will impact our working capital as we will not able to claim ITC in that
month.
You
are requested to asked our vendors to file return within
due date so that we can claim ITC in time.
Relevant clause of Section 16(2)(aa) of CGST Act is below for reference.
“(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37;”
Regards,
XYZ
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