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)
Source ICAI Suggestions on GST Rules Submitted to Govt of India