{"id":74,"date":"2021-12-28T05:59:20","date_gmt":"2021-12-28T05:59:20","guid":{"rendered":"https:\/\/komplytek.com\/blogs\/?p=74"},"modified":"2021-12-30T10:38:58","modified_gmt":"2021-12-30T10:38:58","slug":"gst-section-16-2-aa-latest-update","status":"publish","type":"post","link":"https:\/\/komplytek.com\/blogs\/gst-section-16-2-aa-latest-update\/","title":{"rendered":"GST &#8211; Section 16 (2) (aa) Latest Update"},"content":{"rendered":"<body><p class=\"p1\"><span style=\"font-size: 14px;\">As per Section 16(2)(aa) of Budget 2021, GST input can only be claimed if the invoice is supplied by the party before April 1, 2021.<\/span><\/p>\n<p><span style=\"font-size: 14px;\">It will be effective from <strong>01.01.2022<\/strong><\/span><\/p>\n<p>\u00a0<\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\"><b>The Input Tax Credit (ITC)<\/b><\/span><\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\">The GST paid on the purchase of Goods &amp; Services is known as Input Tax. The Input Tax Credit fundamentally means that taxes paid on inputs are deducted from taxes due on output. According to Section 16(1) of the CGST Act, every registered taxable person is entitled to take credit for input tax paid on any purchase of goods or services being used or aimed to be used in the course and scope of his business, subject to such conditions and limitations as may be recommended and within the timeframe mentioned in section 49, and the said amount shall be credited to such person\u2019s electronic credit ledger.<\/span><\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\">Section 16(2)(aa) of the CGST Act of 2017 was introduced into the Finance Act of 2021 via Section 109.\u00a0 The following is an excerpt from proposed Section 16(2)(aa) of the CGST Act, 2017:<\/span><\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\">In case (aa) the supplier has provided the details of the invoice or debit note mentioned in clause (a) in the statement of outward supplies. Those details are conveyed to the recipient of such an invoice or debit note in the mode specified under section 37;<\/span><\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\">Section 16(2) (aa) states that ITC can only be claimed if the supplier has provided the necessary information in his GSTR-1.<\/span><\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\">In simple words, as per the new amendment (aa) to section 16(2) of the CGST Act, an input tax credit on a receipt or debit note can only be claimed if the details of the invoice or debit note were provided by the supplier in the statement of outward supplies. Those details should be conveyed to the invoice or debit note\u2019s recipient.<\/span><\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\"><b>The Finance Act of 2021 amended Section 16(2) of the CGST Act to include Clause (aa).<\/b><\/span><\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\">It is now clear that ITC claimed on receipts that the supplier did not upload to his GSTR-1, and that must be reversed. The tax\/interest\/penalty must also be paid under section 73(5) of the CGST Act 2017.<\/span><\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\">The vendor must now provide the specifics of such a receipt or debit note in GSTR-1, and the recipient will be entitled to the ITC. Although the communication provision was already included in section 37(1) of the Central Goods and Service Tax Act, it is now a requirement to get an ITC.<\/span><\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\">Such information will be conveyed to the supply receiver as shown in user services &gt; Communication between taxpayers. The receiver must accept the same. A taxpayer can interact with the beneficiary if there is a disparity, such as payment issues or any other issue.\u00a0<\/span><\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\"><b>Why should you work with us?<\/b><\/span><\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\">Komplytek can handle your <a href=\"https:\/\/www.gst.gov.in\/\">GST<\/a> compliance, allowing you to focus on expanding your business instead of worrying about compliance. We will keep track of your GST compliance on the Ledgers GST platform. This will give you access to real-time financial records from anywhere. Ledgers can also sync and integrate with other offline and online programmes you use on a constant basis.<\/span><\/p>\n<p class=\"p1\"><span style=\"font-size: 14px;\"><a href=\"https:\/\/komplytek.com\/\">Komplytek<\/a> offers integrated services and also pliable solutions that are insightful by design. We create huge productivity in the critical spin-out parts of your business. We are a \u201cOne-Stop Solution\u201d for finance and accounting, compliance and regulatory, and other operations portfolios. We personalize our solutions to suit your business requirements. <a href=\"https:\/\/komplytek.com\/\">Komplytek<\/a> has a team of lawyers and chartered accountants who bring many years of corporate experience with them. We ensure that we think like you and act as part of your team rather than an outsourcing partner.<\/span><\/p>\n<\/body>","protected":false},"excerpt":{"rendered":"<p>As per Section 16(2)(aa) of Budget 2021, GST input can only be claimed if the invoice is supplied by the party before April 1, 2021. It will be effective from 01.01.2022 \u00a0 The Input Tax Credit (ITC) The GST paid on the purchase of Goods &amp; Services is known as Input Tax. The Input Tax &#8230; <a title=\"GST &#8211; Section 16 (2) (aa) Latest Update\" class=\"read-more\" href=\"https:\/\/komplytek.com\/blogs\/gst-section-16-2-aa-latest-update\/\" aria-label=\"Read more about GST &#8211; Section 16 (2) (aa) Latest Update\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":76,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,5,13,14,35,3,37,40,33,4],"tags":[15,26,19,29,6,18,36,22,7,38,28,8,9,20,24],"class_list":["post-74","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-financial","category-audit-assurance","category-bookkeeping","category-chartered-accountant-near-me","category-finance-consulting-firms-in-india","category-global-consulting","category-gst","category-itr","category-management-consulting-firm","category-outsourcing-operations-services","tag-accounting-financial","tag-accounting-outsourcing","tag-accounting-payable","tag-accounting-services-for-small-business","tag-audit-assurance","tag-chartered-accountant-near-me","tag-finance-consulting-firms-in-india","tag-financial-accounting-advisory-services","tag-global-consulting","tag-gst","tag-outsourced-bookkeeping-services","tag-outsourcing-operation","tag-outsourcing-operations-services","tag-payroll-management","tag-payroll-management-system"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GST - Section 16 (2) (aa) Latest Update - Komplytek Blogs<\/title>\n<meta name=\"description\" content=\"The GST paid on the purchase of Goods &amp; Services is known as Input Tax. 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