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

Input tax credit time limit: claim prohibited after the earlier of the September return or annual return filing.
The provision limits claiming input tax credit to the earlier of the September return of the following financial year or the filing of the annual return; credit on any invoice, supplementary invoice or debit note is barred after that earlier cut-off, and where taxpayers finalise and file the annual return before September the annual return filing becomes the operative earlier event restricting the credit window.