This is Ravi Verma, In this Article, I will let you know about the new Rule 37A of the GST.
New rule 37A is linked with the GST section of 41
What is rule 41 in the GST?
Under this rule, If you have taken your ITC from your GST portal that is very good but pleases note that point you have taken your ITC and your supplier has not been depositing the GST tax money to the government. And your supplier has received that GST amount from you.
After that, the GST department will send you a notice about this matter, and he will connect you through e-mail and the GST portal, in that e-mail, he will say you that, please return the excess ITC amount with interest which has been availed by you at the time of ITC claiming.
What is Rule 37A?
In the new rule 37A, there are two mechanisms in this rule
- ITC reversal
- ITC reclaim
Let’s know about this new rule. The GST department will try to implement this rule, and after coming to this rule full profit will be taken by the GST department. Suppose that you purchased a piece of machinery from Mr. A, and Mr. A has released a tax invoice, after doing all these steps when I have filed my GST return and availed my ITC, after that, if your supplier has not paid the GST amount to the GST government, then the government will send you a notification in your portal and through the e-mail and say that please reverse the GST amount with interest which was claimed by you at the time of filling of your GST return. And after giving this notification your supplier will pay the pending GST amount to the government, then the GST department will give you a chance to reclaim your previous ITC and avail of it.
Let’s see when this rule will be fully implemented for us.