The Delhi High Court has sought a response from the Center Government on a petition filed against only 20% input tax credit (ITC) 
A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India on missing invoices in GST.
The petition with complain states that monthly dealers’ purchase bills would be delayed by three months as quarterly returns were filed by small suppliers, this could result in a shortage of working capital due to lack of full credit. They can also stop buying goods from small businesses. Businessmen have been protesting against this provision that is released in October.
After 9 October since this provision has been released, rifts between businessmen in the industry have also increased the past few days. There are lots of objections reported against the provisions from across the country, there are possibilities that the same will be discussed in the 38th GST council meeting 
The Goods and Services Tax (GST) Council is concerned about meeting revenue targets, as a consequence of which it will start extensively reviewing the GST rate on 18 December. However, the government is already facing a downward trend in tax collection and now argues that many bogus dealers are taking fake credit without uploading the proper bill.
On Monday, a bench of Justices Vipin Sanghi and Justice Sanjeev Narula issued a notice to the Central Government asking them to counter-file on the petition against sub-rule (4) added under section 36 of the GST Act. Apart from the legal right to claim full credit in the petition, the basis has also been made that the government timeline for returning filing itself is an obstacle. Details of purchases made to quarterly filers to monthly filers will be delayed by at least three months in GSTR-2A 
Find out the full procedure and functionalities of GSTR 2A form with the help of Gen GST software version 2.0. The process is showcased by a simple PDF format. In such a situation where their money will be lost, they will stop buying goods and services from quarterly filers with less than 1.5 crore turnover.
Petitioner Sujit Ghosh said that suppose you have an input credit of ₹ 1 lakh and due to non-uploading/ missing of bills by some suppliers, only ₹ 60,000 in GSTR-2A will be visible. In this case, 20% of the ₹ 60,000 which is (₹ 12,000. ) will be available to you instead of the remaining ₹ 40,000 credit. Due to it, you will be able to claim a total of ₹ 72,000 in that month only, whereas before that you could claim ₹ 1 lakh in full.
Sanjay Sharma, president of Delhi Sales Tax Bar Association, said that no dealer wants to buy goods from such a person so that his credit hangs. Though there is instability in the entire industry due to section 36 (4), but small traders who fill quarterly returns will face direct trade loss due to it.
