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The GST Council will presumably decide on a new rule in GST law under which businesses would be demanded to clarify the rationales for extra input tax credit( ITC) claimed or deposit the amount with the bankroll. The Committee has implied that the provision should demur if the difference is further than 20 percent and further than Rs 25 lakh. GST Council is likely to take a final call on the recommendation of the Committee in its 50th meeting on July 11

The GST Council is likely to decide on a new rule in GST law under which businesses would be needed to explain the reasons for redundant input duty credit( ITC) claimed or deposit the amount with the bankroll, sources said.

They said the Law Committee, comprising duty officers from the center and countries, has editorialized that where the ITC profited in GSTR- 3B return exceeds the quantum of ITC available in agreement with the auto-generated statement GSTR- 2B by a specified threshold, the listed person may be insinuated on the portal about similar difference and be directed to either explain the difference or pay the redundant ITC along with interest.

The Committee has suggested that the provision should protest if the difference is further than 20 percent and further than Rs 25 lakh. The GST Council is likely to take a final call on the recommendation of the Committee in its 50th meeting on July 11.