ITC Credit time limit in MGL

[mk Jain]

Dear Sir/Mam,

As per Section 16 (15) of the MGL, ITC cannot be taken beyond the month of September of the following FY to which invoice pertains or date of filing of annual return, whichever is earlier.

Annual return to be filed in December then why this section says whichever is earlier. My understanding not clear on the said rule.

MK

TMTL

AI Summary

Debate on GST Input Tax Credit deadlines: Claim by September or annual return date, whichever is earlier. A discussion on the Goods and Services Tax (GST) forum centers around the time limit for claiming Input Tax Credit (ITC) under the Model GST Law (MGL). A participant queries the rule that ITC cannot be claimed beyond September of the following financial year or the date of the annual return filing, whichever is earlier. Responses clarify that ITC is not allowed on invoices or debit notes after these deadlines. The rationale is to finalize returns by September or the annual return date. The conversation also touches on the relevance of the 'whichever is earlier' clause, considering different filing timelines.