Centre & states face off on cess

The Council decided to restrict ITC for unmatched invoices, improve tax collection, get more persons to file returns and rationalise some rates

Last Wednesday, the Goods and Services Tax (GST) Council met, in the backdrop of falling revenues and failure of the central government, to compensate some states for shortfall in revenues. The Council decided to restrict input tax credit (ITC) for unmatched invoices, improve tax collection, get more persons to file returns and rationalise some rates.

On October 9, a Rule 36(4) was inserted in the Central GST Rules, 2017. This restricted a registered entity from availing of ITC in respect of invoices for which details have not been uploaded by suppliers beyond 20 per cent of the eligible amount, the details