There is once again fear has attained out for the traders because of the new Delhi goods and service system (GST) as per section 36(4). There is anger for the same rule among the traders as it is called an anti-trade rule from its start. Due to covid-19 from February to August, it was stopped, and there was peace all about. But because of the coming of the auto-generated input tax credit (ITC) again the fear arises between the traders.
Despite Providing Benefits the Govt is Giving Fear
The businessman once again seemed to be in trouble as per section 36(4) said by the Chamber of Trade and Industry (CTI) chairman Brijesh Goyal. In the pandemic times, the traders sought in hope that the government would give them assistance but on the opposite, the 36 (4) law of the GST (Goods and Services Tax) is generating fear. The ordinary businessman working with restricted means was not able to take the strain. In this condition, the demand for CTI is to refuse 36 (4) completely.
What is 36 (4)
There is a purpose to raise the tax collection excluding the GST rate last year, says tax expert CA Rakesh Gupta and is known in the name of GST 36(4). How much tax is to get furnished every month? Now it does not depend on how much tax is built but additionally relies on whether your supplier has GSTR-1 quarter or monthly and supplier has filed their GSTR-1 time. If the supplier has filed the tax post 11 or its return is filed quarterly and not monthly, then the assessee needs to furnish the GST on the sale along with the GST of goods or services received from the supplier. Now there is procurement to provide GST ITC on the month in which it will appear in GST return 2B 
Check out the main features of the new GSTR 2B form under the current GST return filing system. The taxpayers will file GSTR 2B from 1st October 2020. read more. GSTR 1B of the dealer is made from the GSTR 1 furnished through the supplier on the 11th date.
Let us Discuss it Through the Example
As per the CA Rakesh Gupta, Vishal Gupta motors is engaged in doing the business related to motor parts on which 28% GST is applicable. In November they sold items worth Rs 50 lakh in which Rs 14 lakh GST is made. In November they had made the purchase of Rs 45 lakh on which an input tax credit of Rs 12 lakh 60 thousand will be received. Accordingly, a GST of 1 lakh 40 thousand rupees is needed to be made in November. On 12th Dec their CA tells him that they have to give Rs 14 lakh instead of Rs 1,40,000 for November month. The purpose for this was that till December 11, their supplier didn’t furnish the GSTR1 or unable to do so even aspiring to be quarterly.
The GST portal warns them to furnish the return and prompt that you are doing wrong, you are breaking the law and you will have to face the outcomes when they try to file the GST payment 
Check out due dates of payment under GST for general and composition taxpayers in India. We have included penalty charges on late payment with interest of Rs 1,40,000.
Rule 36(4) is Now Provoking Which is Older by a Year
Section 36(4) is older than a year but this month is provoked by it. The auto-generating ITC on the portal is displayed in a red box. A warning is to be given to furnish the 3B with respect to the 36(4) section if the Income-tax credit exceeds 10% of the auto-generated ITC, says a tax expert. No one is stooping to file the return. The return is also filed for the individual who claims for more ITC.
GSTR 1 Figures to be Filed on Time
There are nearly about 54 lakh 63 thousand monthly dealers out of 1 crore 8 lakh regular dealers. Important for 15 lakh 30 thousand GSTR1 of the month of October 36 (4) was filed till 11 November. In other words, for the month of October, ITC was burdened with 36 (4) visits from 93 lakh dealers. That is, only purchases made from 1 supplier in 7 survived from 36 (4). When so few taxpayers file their GSTR1 time, the loss from 36 (4) increases even more.
Effect of QRMP will be Carried on after Arrival of Rule 36(4)
Rule 36(4) is to be carried on in the new system QRMP appearing in GST 
Know the everything about QRMP (Quarterly Return Filing & Monthly Payment) Scheme under GST. Also, we have included the alternation and payment of tax under QRMP from January 1, there will be a difference i.e quarterly dealers who appear in it, if IFF is furnished by them then for the first two months by 13th of the upcoming month then the other party will receive the ITC of the similar month.
Trader do Business or follow back Supplier to File Returns
The tax expert Sachin Agarwal suggests that from 36(4) the traders are in a situation of fear. The business is already not giving good results. Even filing the tax on the buying, as per not getting the complete advantages of ITC, a double tax is used to get paid.
