Compliance

# Section 16(2)(aa) CGST Act Explained: Legal Rules for ITC Section 16(2)(aa) was introduced to eliminate provisional Input Tax Credit claims. It establishes that **no taxpayer shall be entitled to ITC** unless the details of the invoice or debit note have been communicated to the recipient in GSTR-2B. ## Key Statutory Requirements under Sec 16(2)(aa) 1. **Supplier Filing Mandatory:** Supplier must file GSTR-1 or use the Invoice Furnishing Facility (IFF). 2. **Communication in GSTR-2B:** Invoice must reflect in the generated GSTR-2B of the corresponding period. 3. **No Relaxation for Good Faith Purchases:** Even if you paid the vendor in full including GST, credit is denied if the vendor fails to file. ## Legal Safeguards for Buyers - Include GST filing clause in supplier contracts. - Retain monthly GSTR-2B matching audit logs generated by GSTMatch. - Issue formal notice to non-filing vendors referencing Sec 16(2)(aa).