Cos stressed on change in rules regarding ITC claim Nowadays, Companies are facing stress on their working capital due to a Goods and Services Tax (GST) regulation which has resulted in hundreds of crores of rupees stuck in ITC claims. By a regulation, government has disallowed companies to avail input tax credit if vendor invoices are not uploaded on the GST network and thereby creating problems for companies. According to the GST law, to be eligible for ITC, every invoice will have to be uploaded on the GST IT network for every transaction. Companies are claiming that since the regulation does not specify the time period of this calculation, it is creating a situation where some companies are likely to end up losing input tax credit if the vendor has not supplied an invoice. The restriction of input tax credit to 20% of the eligible ITC in absence of invoice appears to be an anti-evasion measure driven by revenue considerations. However, this means that businesses would need to establish a real time reconciliation mechanism to avoid working capital blockages. The last date for claiming the input tax credit for FY 18-19 is 20th October 2019. Many companies are claiming that they won’t be able to reconcile the statements as many vendors are not able to give the invoices. This is a unilateral amendment wherein the credit is restricted on the basis of suppliers uploading without giving a chance to the taxpayer to add to details which suppliers have not reported. This will be applicable to all the taxpayers Government was asked to extend the date for claiming input tax credit as it could lapse after the due date for many companies. The government can extend the date or give a clarification around this since the problem has worsen due to the slow IT platform of the GST.